EDF, First Solar to build solar panel plant in France

EDF Energies Nouvelles and First Solar Inc will build France's largest solar panel manufacturing plant. With an initial annual capacity of more than 100MWp, the plant will produce solar panels made with First Solar's thin-film photovoltaic technology.

This new venture will support the recently announced goal of the French government to become a leader in sustainable energy technologies including solar electricity. At full production, projected for the second half of 2011, the plant will employ more than 300 people.

Under the terms of the arrangement, First Solar will build and operate the plant in France. The plant represents an expected investment of more than EUR 90 million. The initial annualised capacity of the plant is expected to exceed 100MWp, making it the largest manufacturing facility for solar panels in France.

EDF will finance half of the capital expense and plant start-up costs and will benefit from the plant's entire output for the first 10 years. First Solar and EDF intend to announce their decision on the site location within the next few months.

French Sustainable development minister Jean-Louis Borloo said. "This investment represents a veritable turning point for the photovoltaic industry and confirms that France is more than ever in a position to play a leading role globally," he said. "

Pâris Mouratoglou, EDF board chairman said, "This agreement represents a key milestone in the strategy of our group, which has the ambition to be a global leader in solar energy."

The company raised EUR 500 million last year to finance its expansion in the photovoltaic sector. It has set itself a target of installing 500MWp in photovoltaic capacity for its own account by 2012. "Securing a competitive supply is essential for us to participate in the development of a large French solar market," he said.

Mike Ahearn, chairman and chief executive officer of First Solar, said, "The decision to invest in France reflects our firm belief in the French market and its great potential. 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."