The companies will form a joint venture (JV) Aqua Clean Energy Fund to co-develop a pipeline of floating PV projects with a combined installed capacity of over 50MW.

The floating solar platform allows standard PV panels to be installed on large bodies of water such as drinking water reservoirs, quarry lakes, irrigation canals, or remediation and tailing ponds.

Composed of recyclable materials, the platform has very low environmental impact. It reduces water evaporation, thereby, conserving irrigation and drinking water and slowing algae growth due to the shielding of the water by the floating island, Solar Power said.

Solar Power chairman Xiaofeng Peng said: "This technology not only generates clean solar power energy, but also serves to conserve water in critically dry regions like the Southwestern US and California in particular, which is now experiencing its fourth consecutive year of drought.

"With extensive experience in identifying host surface sites, securing water surface use approvals, performing feasibility studies and managing PV projects, Aqua Clean Energy is the ideal partner for us in the floating PV market."

Earlier this month, Infratech Industries announced plans to begin construction of the first floating solar power plant in South Australia.

To be developed on a wastewater treatment facility in Jamestown, the floating solar power plant will become operational by early April.