First Solar Announces Five New Agreements for 685 MW and Production Expansion

• 685 Megawatts of Additional Long Term Module Supply Agreements
       Totaling $1.28 Billion
• 120 Megawatt Annual Nameplate Production Capacity Expansion

In one of the largest solar cell supply agreements, First Solar, Inc. (Nasdaq:FSLR) announced that it has entered into five agreements for the manufacture and sale of solar modules totaling 685 Megawatts. These new agreements are expected to allow for sales of approximately $1.28 billion at an assumed exchange rate of $1.30/EUR1.00, over the period of 2007 to 2012.

Included in the new agreements are long term agreements with EDF Energies Nouvelles, Sechilienne-Sidec, RIO Energie GmbH & Co, and KG, a joint venture of the Stadtwerke Mainz AG utility company and the Juwi Group. First Solar and the Juwi Group have also agreed to increase volumes under an existing agreement.

First Solar also announced that its board of directors has approved the construction of an additional manufacturing plant in Malaysia with an annual production nameplate rating of 120 Megawatts, representing an investment of approximately $150 million. The additional production capacity of the new plant is scheduled to come on line in the first half of 2009.

Comments

[Chandranshu Pandya]

I envisage a lot many agreements like this in the next five years.

[Kit P]

For every 1000 MW of actual solar PV manufacturing capacity, 5 MWe of actual electricity generation occurs.

[Nucbuddy]

Kit,

You mean these solar panels are not producing full rated power?

[Calamity]

Nucbuddy,

Do you think this nuke is producing full rated power?