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First Solar Signs PPA with Cleantech Solar to Power India Manufacturing Facility
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First Solar, Inc. (Nasdaq: FSLR) has entered into a 15-year Power Purchase Agreement (PPA) with Cleantech Solar to construct 150 MW of photovoltaic solar and 16.8 MW of wind-generating assets in Tamil Nadu, India. The solar and wind generation assets are expected to provide up to 70% of First Solar's new 3.3 GW vertically integrated solar manufacturing facility's anticipated electricity needs. The agreement will displace almost 7,000 kilotons of CO2 emissions over the duration of the PPA. Cleantech Solar will also procure 150 MW of India-made Series 7 thin film solar panels from First Solar, which are expected to be delivered in the first half of 2024.
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The recent Power Purchase Agreement (PPA) between First Solar, Inc. and Cleantech Solar represents a significant step in the renewable energy sector, particularly within the Indian market. The scale of this PPA, involving 150 MW of photovoltaic solar and 16.8 MW of wind-generating assets, underscores the growing demand for renewable energy sources as corporations seek to lower their carbon footprint and secure stable energy costs.
The strategic procurement of India-made Series 7 modules by Cleantech Solar not only supports local manufacturing but also aligns with the Indian government's 'Make in India' initiative, which aims to boost the country's manufacturing sector. This move could potentially stimulate the domestic renewable energy industry, leading to job creation and technological advancements within the region.
From a market perspective, the partnership may enhance investor confidence in First Solar's commitment to sustainability, potentially impacting its stock valuation positively. The emphasis on using clean energy for a significant portion of the facility's electricity needs could set a benchmark for other manufacturing plants, thereby influencing the broader industry trend towards renewable energy adoption.
The environmental implications of the PPA are profound, with an estimated displacement of nearly 7,000 kilotons of CO2 emissions over its lifetime. This figure is a testament to the potential of renewable energy projects to contribute significantly to carbon emission reduction targets. Furthermore, the net-zero water withdrawal feature of First Solar's manufacturing facility in Tamil Nadu addresses the critical issue of water conservation in a region known for high baseline water stress.
The introduction of India's first photovoltaic solar recycling plant within the facility is a noteworthy advancement, positioning First Solar as a leader in sustainable manufacturing practices. The closed-loop semiconductor recovery process not only reduces waste but also exemplifies the circular economy model, which could inspire other industries to adopt similar recycling initiatives.
The technical aspects of First Solar's Series 7 thin film solar panels merit attention, as they are poised to set industry benchmarks for quality and environmental performance. The use of advanced, ultra-low carbon thin film technology highlights the continuous innovation within the solar energy sector. It is also indicative of the shift towards more sustainable production processes that minimize carbon and water footprints.
The PPA's focus on leveraging such technology for the solar PV component is strategic, as it aligns with global sustainability goals and enhances the value proposition to corporate clients seeking greener energy solutions. As the renewable energy market evolves, the integration of such high-efficiency, low-impact modules is likely to become a critical factor in project viability and competitiveness.
Wind, solar PPA estimated to displace almost 7,000 kilotons of CO2 emissions over lifetime
Cleantech Solar to procure 150 MW of India-made Series 7 modules for project under PPA
TEMPE, Ariz. & CHENNAI, India--(BUSINESS WIRE)--
First Solar, Inc. (Nasdaq: FSLR) today announced that it has entered into a 15-year, captive Power Purchase Agreement (PPA) with Cleantech Solar, a leading provider of renewable energy solutions to corporations in India and Southeast Asia. Under the agreement, Cleantech Solar will construct 150 megawatts (MW) of photovoltaic (PV) solar and 16.8 MW of wind-generating assets in Tamil Nadu, India, supplying approximately 7.3 gigawatt-hours (GWh) of clean electricity to First Solar’s new 3.3-gigawatt (GW) vertically integrated solar manufacturing facility, also located in Tamil Nadu.
When fully commissioned by the third quarter of 2024, the solar and wind generation assets are expected to provide up to 70% of the facility’s anticipated electricity needs. They are expected to displace almost 7,000 kilotons of CO2 emissions over the duration of the PPA. Furthermore, Cleantech Solar has agreed to procure 150 MW of advanced, India-made Series 7 thin film solar panels from First Solar, utilizing the modules to power the solar PV component of the PPA. The modules are expected to be delivered in the first half of 2024.
“Our new manufacturing facility in Tamil Nadu sets a high benchmark for responsible and sustainable vertically integrated solar manufacturing, not just in India, but globally,” said Sujoy Ghosh, vice president and managing director, First Solar, India. “By powering our operations with clean, renewably-generated electricity, we are working to further reduce our environmental footprint, which is already the lowest in the industry.”
First Solar’s Tamil Nadu plant, located in an area of high baseline water stress, is believed to be the world’s first net-zero water withdrawal solar manufacturing facility. The facility is designed to minimize its impact on local water resources and will rely entirely on tertiary treated reverse osmosis water from the city's sewage treatment plant and have zero wastewater discharge. Additionally, the factory is home to India’s first photovoltaic (PV) solar recycling plant. The company pioneered high value solar recycling, which provides closed-loop semiconductor recovery for use in new modules, while also recovering other materials including aluminum, glass, and laminates.
First Solar’s responsibly produced, advanced thin film photovoltaic (PV) modules set industry benchmarks for quality, durability, reliability, design, and environmental performance. The company’s solar modules have the lowest carbon and water footprint of any commercially available PV module today, and it’s the first PV manufacturer to have its product included in the Electronic Product Environmental Assessment Tool (EPEAT) global registry for sustainable electronics.
“We are delighted to announce our strategic partnership with First Solar. This collaboration extends beyond powering First Solar's flagship manufacturing facility in India; it involves leveraging their advanced, ultra-low carbon thin film solar panels to energize our solar assets,” said Sachin Jain, chief executive officer, Cleantech Solar. “Cleantech has a substantial presence in the state of Tamil Nadu within the renewable energy sector, particularly in Wind and Solar. Our state-of-the-art solar and wind energy parks in the region play a pivotal role in delivering clean and cost-competitive power to our esteemed clients, including First Solar.”
Jain added, “This collaboration enables our partners’ efforts to diversify their energy sources, integrate renewable energy into their operations, and achieve a higher degree of stability and sustainability in their power supply. This partnership exemplifies our commitment to advancing sustainable energy solutions and reinforces our position as a key player in the renewable energy landscape. We look forward to a mutually beneficial relationship with First Solar, contributing to the growth and success of both organizations.”
The agreement is believed to be one of the largest intra-state PPAs in India and the projects being developed across Cleantech Solar’s renewable energy parks in Tamil Nadu are already providing solar, wind, and hybrid energy solutions to its corporate customers. With this latest agreement, Cleantech Solar’s total portfolio size in Tamil Nadu now stands at nearly 500 MW across operations and construction stages, and includes solar, wind and hybrid power projects.
About Cleantech Solar
Cleantech Solar is a pan-Asia supplier of renewable energy to corporates, combining the capabilities of a global player with responsiveness and agility. Headquartered in Singapore, Cleantech Solar has numerous solar and wind projects across India and Southeast Asia, covering approximately 1.2 GWp of assets in operations, construction and development stages. This includes installations in India, Singapore, Cambodia, Indonesia, Malaysia, Thailand and Vietnam. For information, please visit www.cleantechsolar.com.
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 PV modules represent the next generation of solar technologies, providing a competitive, high-performance, lower-carbon alternative to conventional crystalline silicon PV modules. 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 press release contains various “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) First Solar’s decision to enter into a 15-year, 170 megawatt (MW) annual Power Purchase Agreement with Cleantech Solar; 2) the expectation that Cleantech Solar will supply approximately 7.3 gigawatt-hours (GWh) of clean electricity to power First Solar’s new manufacturing facility in Chennai, India, covering 70% of the facility’s anticipated electricity needs; 3) that the solar and wind generation assets fully commissioned by the third quarter of 2024; 4) Cleantech Solar’s decision to procure 150 MW of advanced, India-made Series 7 thin film solar panels from First Solar, and its intent to utilize these panels to power assets that will supply energy to First Solar under the signed PPA. 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 First Solar’s current expectations and First Solar’s 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. First Solar undertakes 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 First Solar’s 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 and our subsequently filed Quarterly Reports on Form 10-Q, as supplemented by our other filings with the Securities and Exchange Commission.
What is the 15-year Power Purchase Agreement (PPA) between First Solar, Inc. and Cleantech Solar about?
The 15-year PPA involves Cleantech Solar constructing solar and wind-generating assets in Tamil Nadu, India, to supply clean electricity to First Solar's new 3.3 GW solar manufacturing facility.
How much CO2 emissions are expected to be displaced by the agreement?
The agreement is estimated to displace almost 7,000 kilotons of CO2 emissions over the duration of the PPA.
What will Cleantech Solar procure from First Solar?
Cleantech Solar will procure 150 MW of India-made Series 7 thin film solar panels from First Solar.
Where will the solar and wind generation assets be located?
The solar and wind generation assets will be located in Tamil Nadu, India.
When are the India-made Series 7 thin film solar panels expected to be delivered?
The panels are expected to be delivered in the first half of 2024.
