Enel Green Power, Sharp Corporation (6753.T) and STMicroelectronics (NYSE: STM) signed an agreement for the manufacture of triple-junction thin-film photovoltaic panels in Italy. At the same time, Enel Green Power and Sharp signed a further agreement to jointly develop solar farms.
Today’s agreement regarding the photovoltaic panel factory follows the joint venture agreement made Enel Green Power and Sharp in November 2008. STMicroelectronics (www.st.com) has joined this strategic partnership.
Enel Green Power is the Enel Group (ENEL.MI) company dedicated to developing and
managing energy generation from renewable sources in Italy and abroad.
This agreement marks the first time that three global technology and industrial powerhouses have joined together in an equal partnership to contribute their unique value-add to the solar industry. It brings together Enel Green Power, with its international market development and project management know-how; Sharp, and its exclusive triple-junction thin-film technology, which will be operational in the mother plant in Sakai, Japan as of spring 2010; and STMicroelectronics, with its manufacturing capacity, skills and resources in microelectronics.
The factory, located in Catania in the existing M6 facility to be contributed by STMicroelectronics, is expected to have an initial production capacity of 160 megawatts (MW) per year. The plant’s capacity is targeted to be gradually increased to 480 MW per year. Photovoltaic panel manufacturing at the Catania plant is expected to start at the beginning of 2011.
The project of 160 MW will require a total investment of EUR 320 million and will be funded by a combination of equity, state grants and project financing with no recourse to the Joint Venture’s shareholders beyond their quota in the Joint Venture. Each partner will subscribe one third of the equity–an expected contribution up to EUR 70 million each, either in cash or in-kind–and will hold one third of the shares in the new joint venture company.
The factory output will be used to serve solar markets in the EMEA (Europe, Middle East and Africa) region with a particular focus on the Mediterranean area. In this region, Enel Green Power and Sharp already plan to jointly develop solar farms. Enel.si, the Enel Green Power company specializing in the installation of photovoltaic systems in the retail market, will also participate in the marketing effort, offering panels directly and through its franchisee network of over 500 qualified installers in Italy.
Enel Green Power and Sharp have signed an additional agreement aimed at the creation of an equal joint venture to develop solar farms. The goal is to install cumulative capacity at a level of 500 MW by the end of 2016, making use of the photovoltaic panels manufactured at the Catania factory.
The Catania facility will take advantage of an existing semiconductor plant and related facilities as well as a workforce skilled in silicon-based manufacturing. In addition, Catania hosts Conphoebus, an Enel research center dedicated to renewable sources, solar in particular, and energy savings.
Enel Green Power currently operates some 4,700 MW in plants relying on hydro, wind, geothermal, solar and biomass sources in 14 countries in Europe and the Americas.
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