EDP Renewables Places Multi-Year Order for 1.8 GW of First Solar Modules

Rhea-AI Summary

First Solar and EDP Renewables have entered a multi-year agreement for 1.8 GWdc of advanced thin film photovoltaic solar modules, set for delivery up to 2028. This collaboration aims to support EDP Renewables' growth in the U.S. solar market, enhancing its installed capacity and development pipeline. Notably, EDP plans to add 4.8 GW of solar capacity by 2026. First Solar, known for its low-carbon modules, is expanding its U.S. manufacturing capabilities to exceed 20 GW globally by 2025, including a new factory in Alabama. This deal affirms First Solar's commitment to sustainability and establishes a vital supply arrangement for EDP Renewables.

Positive

• Secured a multi-year order of 1.8 GWdc of solar modules, ensuring long-term revenue.
• First Solar's expansion to over 20 GW global manufacturing capacity by 2025 boosts production scale.
• Strengthened partnership with EDP Renewables enhances market position in U.S. solar sector.

Negative

• None.

Advanced ultra-low carbon thin film modules to power US projects, with deliveries up to 2028

TEMPE, Ariz. and HOUSTON, Texas, March 30, 2023 (GLOBE NEWSWIRE) -- First Solar, Inc. (NASDAQ: FSLR) and EDP Renewables (Euronext: EDPR) today announced a multi-year order for 1.8 gigawatts (GWdc) of First Solar’s advanced thin film photovoltaic (PV) solar modules. The modules, which will be delivered up to 2028, will power US projects developed by EDP Renewables North America (EDPR NA).

EDP Renewables is a leading global pure renewable energy company that operates in 28 markets around the globe. North America is the company’s biggest market in terms of installed capacity and production, where the company currently operates 475 MW of solar projects, has 1.6 GW of solar capacity under construction, and has a robust solar development pipeline across the continent. In addition, EDPR operates more than 200 distributed generation solar sites throughout North America. Including both utility-scale and distributed generation, EDPR plans to add 4.8 gigawatts (GW) of solar capacity in North America in 2023-2026.

“EDP Renewables’ ambitious business plan calls for more than 4 GW of renewable capacity annually through 2026 with nearly half of the new clean energy generation to come from North America,” said Sandhya Ganapathy, chief executive officer, EDPR NA. “Solar is an increasingly important technology in our portfolio, and we are well-positioned to work with innovative and environmentally responsible partners and products that can help us meet our outlined targets and lead the energy transition.”

First Solar’s responsibly produced advanced thin film PV modules set industry benchmarks for quality, durability, reliability, design, and environmental performance. It is the only one of the world’s ten largest solar manufacturers to be a member of the Responsible Business Alliance (RBA), the world’s largest industry coalition dedicated to supporting the rights and well-being of workers and communities in the global supply chain, and the company has zero tolerance for forced labor in its manufacturing or its supply chains. First Solar’s modules have the lowest carbon and water footprint of any commercially available PV module today and the company is the first PV manufacturer to have its product included in the Electronic Product Environmental Assessment Tool (EPEAT) global registry for sustainable electronics.

“We welcome EDP Renewables’ decision to power its projects with our technology and look forward to supporting its growth in the US and, potentially, beyond,” said Mark Widmar, chief executive officer, First Solar. “EDP Renewables joins a growing roster of large, sophisticated developers choosing long-term pricing and supply certainty, and responsibly produced solar modules by powering their projects with First Solar’s technology. This validates the value that our customers place in our differentiation, not just in technology but our way of doing business.”

With this strategic agreement, EDPR de-risks its solar pipeline in the US by securing equipment for its expected growth in the utility and distributed generation segments. Additionally, this allows EDPR to increase its commitment to local content in the US, while also pursuing its strategy of supply chain and technology diversification. The partnership between both companies started in 2019, when EDPR acquired a 50% stake in a 278 MW solar portfolio developed by First Solar.

First Solar is expanding its US manufacturing footprint, which currently stands at more than 5 GW of annual nameplate capacity with three operating factories in Ohio. The company is expected to reach more than 10 GW by 2025, when it completes its new $1.1 billion factory in Alabama and a $185 million expansion of its existing capacity in Ohio. First Solar is also investing $270 million in a new research and development innovation center in Ohio. Additionally, First Solar is expected to commission its first factory in India in the second half of 2023, adding 3.4 GW of new nameplate annual capacity. The company expects to have more than 20 GW of annual global nameplate manufacturing capacity by 2025.

About EDP Renewables

EDP Renewables North America LLC (EDPR NA), its affiliates, and its subsidiaries develop, construct, own, and operate wind farms and solar parks throughout North America. Headquartered in Houston, Texas, with 58 wind farms, nine solar parks, and eight regional offices across North America, EDPR NA has developed more than 8,800 megawatts (MW) and operates more than 8,200 MW of onshore utility-scale renewable energy projects. With more than 950 employees, EDPR NA’s highly qualified team has a proven capacity to execute projects across the continent. For more information, visit www.edpr.com/north-america.

EDPR NA is a susidiary of EDP Renewables (Euronext: EDPR), the fourth largest wind energy producer worldwide with presence in 28 markets across Europe, North America, South America, and Asia Pacific. Based in Madrid and with main regional offices in Houston, São Paulo, and Singapore, EDPR has a robust development portfolio with first class assets and a market-leading operational capability in renewables. These include wind onshore, utility scale and distributed solar, wind offshore (through its 50/50 JV - OW), and technologies complementary to renewables, such as batteries and green hydrogen.

EDPR is a division of EDP (Euronext: EDP), a leader in the energy transition with a focus on decarbonization. Besides its strong presence in renewables (with EDPR and hydro operations), EDP has an integrated utility presence in Portugal, Spain and Brazil including electricity networks, client solutions and energy management.

About First Solar, Inc.
First Solar is a leading American solar technology company and global provider of responsibly produced eco-efficient solar modules advancing the fight against climate change. Developed at R&D labs in California and Ohio, the company’s advanced thin film photovoltaic (PV) modules represent the next generation of solar technologies, providing a competitive, high-performance, lower-carbon alternative to conventional crystalline silicon PV panels. From raw material sourcing and manufacturing through end-of-life module recycling, First Solar’s approach to technology embodies sustainability and a responsibility towards people and the planet. For more information, please visit www.firstsolar.com.

For First Solar Investors
This release contains forward-looking statements, which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to statements concerning 1) an order for 1.8 GW_DC of solar modules by EDP Renewables; 2) First Solar’s plan to invest approximately $1.1 billion in building a fourth factory in Alabama, $185 million on expanding the capacity of its existing manufacturing footprint in Ohio, and $270 million in a new R&D innovation center in Ohio; 3) First Solar plan to commission a new factory with 3.4 GW of annual nameplate capacity in India in the second half of 2023; and 4) First Solar’s expectation that its annual US nameplate manufacturing capacity will expand to 10 GW by 2025, while its global nameplate manufacturing capacity will exceed 20 GW by 2025. These forward-looking statements are often characterized by the use of words such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “seek,” “believe,” “forecast,” “foresee,” “likely,” “may,” “should,” “goal,” “target,” “might,” “will,” “could,” “predict,” “continue” and the negative or plural of these words and other comparable terminology. Forward-looking statements are only predictions based on our current expectations and our projections about future events and therefore speak only as of the date of this release. You should not place undue reliance on these forward-looking statements. We undertake no obligation to update any of these forward-looking statements for any reason, whether as a result of new information, future developments or otherwise. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by these statements. These factors include, but are not limited to, the matters discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our most recent Annual Report on Form 10-K, as supplemented by our other filings with the Securities and Exchange Commission.

Media Reuven Proença First Solar Media media@firstsolar.com	Investors Robyn Remes First Solar Investor Relations investor@firstsolar.com
Blair Matocha EDP Renewables Media Communication_edpr@edpr.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c908613a-4292-46b1-b416-214d98101a63

FAQ

What is the significance of the 1.8 GWdc order for First Solar?

The 1.8 GWdc order represents a strategic revenue stream for First Solar, ensuring module deliveries to EDP Renewables for various U.S. projects, thus solidifying its market presence.

When will First Solar start delivering the solar modules?

Deliveries of the solar modules are scheduled to occur up to 2028.

How much solar capacity is EDP Renewables planning to add in North America?

EDP Renewables plans to add 4.8 GW of solar capacity in North America from 2023 to 2026.

What are the key environmental benefits of First Solar's modules?

First Solar's advanced modules have the lowest carbon and water footprint of any commercially available PV module, emphasizing sustainability.

How does the new partnership affect First Solar's manufacturing capacity?

The partnership supports First Solar's goal to expand its annual manufacturing capacity to over 20 GW globally by 2025.