First Solar Enters Venture for France's Largest Solar Plant

The Arizona-based CdTe thin-film PV manufacturer is partnering with EDF Energies Nouvelles to build a solar panel plant with an initial capacity of >100 MWp per year.

Aaron Hand -- PV Society, 7/23/2009

First Solar Inc. (Tempe, Ariz.), which has quickly built itself into one of the leading solar panel manufacturers with its CdTe thin-film photovoltaic technology, has now entered into a venture to build France's largest solar panel manufacturing plant with EDF Energies Nouvelles (EDF EN, Paris). The plant will produce solar panels made with First Solar's PV technology. With an initial annual capacity of more than 100 MWp, the plant is expected to employ more than 300 people by the time it reaches full production, projected for the second half of 2011.

Under the terms of the arrangement, First Solar will build and operate the plant, which represents an expected investment of more than €90 million ($128.21M). EDF EN will finance half of the capital expense and plant start-up costs, and will benefit from the plant's output for the first 10 years. First Solar and EDF EN plan to announce their decision on the site location within the next few months.

"This agreement represents a key milestone in the strategy of our group, which has the ambition to be a global leader in solar energy," said Pâris Mouratoglou, chairman of the board at EDF EN. "Securing a competitive supply is essential for us to participate in the development of a large French solar market."

First Solar currently manufactures its solar panels in the United States, Malaysia and Germany. But its latest venture calls for producing panels in France's largest solar panel factory.

EDF EN has built several solar projects with First Solar panels, Mouratoglou noted, and this agreement expands on that relationship. The French company successfully raised €500 million ($712.24M) last year to finance its expansion in the photovoltaic sector, and aims to install 500 MWp in PV capacity by 2012.

"The decision to invest in France reflects our firm belief in the French market and its great potential," said Mike Ahearn, chairman and CEO of First Solar. "It represents a vote of confidence in the policies being developed by the French government since the Grenelle de l'Environnement to promote renewable energies and allow solar electricity to compete economically with other forms of energy." The long-term commitment of the French government to provide appropriate policy and regulatory frameworks was a key factor in First Solar's decision to invest in France, he added.

First Solar's manufacturing site will also include a facility for recycling solar panels, France's first such facility and Europe's only solar panel recycling plant outside of Germany.