First Solar shutting down manufacturing In Germany, scaling back in Malaysia

First Solar Inc. says it is restructuring its operations in response to deteriorating market conditions in Europe. As part of this program, the company will close its manufacturing operations in Frankfurt, Germany, in the fourth quarter of this year. Additionally, the company will indefinitely idle four production lines at its manufacturing center in Kulim, Malaysia, on May 1.



'Permanently closed' - First Solar Frankfurt (Oder) Germany. Image: First Solar



'Indefinitely close four manufacturing lines' - First Solar in Kulim Kedah, Malaysia.
Image: Yeong Wei Kheen on Panoramio.


These actions, combined with other personnel reductions in Europe and the U.S., are expected to reduce First Solar's global workforce by approximately 2,000 positions - approximately 30% of the total. The restructuring initiatives are expected to reduce First Solar's costs by $30 million to $60 million this year and $100 million to $120 million annually going forward.

In addition, the company's average manufacturing cost is expected to improve to between $0.70/W and $0.72/W in 2012 as a result of the changes - below prior expectations of $0.74/W. First Solar estimates that average module manufacturing costs will range from $0.60/W to $0.64/W in 2013.

Mike Ahearn, chairman and interim CEO of First Solar, said in a statement that the European PV market has "deteriorated," causing the company's manufacturing operations there to cease to be economically sustainable.

"First Solar's decision to permanently close its German production facility and indefinitely close four lines at its Malaysian facility once again demonstrates the intense pressure that even the 'lowest cost' PV producers are under today to reduce their manufacturing costs," commented Sam Wilkinson, senior analyst at research firm IMS Research, in a statement.

"First Solar's costs (per watt) had been around 50% lower than those of a typical Chinese tier-one c-Si manufacturer in 2009," Wilkinson said. "Following rapid declines in polysilicon pricing, that difference is now less than $0.10/W and is predicted to close further throughout 2012.

"We've seen a number of recent examples of major Western suppliers shutting down local production of wafers, cells and modules in favor of sourcing products from Asian manufacturers as it is lower cost and offers greater flexibility," he added.

Via: Solar Industry
http://www.solarindustrymag.com/e107_plugins/content/content.php?content.10118

Australia's A$450 million solar PV project

Australia will go ahead with a large-scale solar PV project in New South Wales state to be undertaken by solar panel manufacturing giant First Solar, and gas retailer AGL Energy.

One of First Solar's projects. Image: First Solar Inc.

Australian federal government awarded a $130 million grant to AGL Energy and First Solar to build the 159 MW grid connected solar power stations. The A$450million (US$446 mil) renewable energy project will be built at two sites - Broken Hill and Nyngan.

Brief description of the project


Locations : Broken Hill and Nyngan in New South Wales
Generating capacity: 159 MW
Electricity sufficient for: 30,000 homes
Cost : A$450 million
Completion : end-2015
Job created by the project: 150 jobs in Broken Hill & up to 300 in Nyngan


Sydney Morning Herald reported that Energy Minister Martin Ferguson reopened first-round bidding in February after the consortium behind the initial winner - the Moree Solar Farm - proposed major changes to its project and failed to meet a December deadline to secure financial backing.

Mr Ferguson on Saturday (June 9) said the 159 megawatt project in Broken Hill and Nyngan represented excellent value for money and would ensure Australia brought industrial-scale solar power to market. The energy minister said a rigorous assessment process by the independent Solar Flagships Council found the AGL-First Solar bid had the highest level of merit overall "representing value-for-money, low risk and high commercial viability".

"At the end of the day it all comes down to cost and if large scale solar is going to succeed in Australia it has to be cost competitive," Mr Ferguson said in a statement.

But he noted all short-listed applicants, including the Moree Solar Farm, TRUenergy and Infigen-Suntech bids, were of "high merit" and would be referred to the new Australian Renewable Energy Agency for future funding consideration.


TheGreenMechanics' two cents on Malaysian scenario

Great move by Australia. Remember this country is one of the major producers of the 'dirty' coal and in terms of consumption it is in the top ten countries.

Australia made the move to spend more in producing energy from cleaner source. They are focused towards becoming 'net user' compared to Malaysia which seems to be aiming at becoming major producer of the solar panel itself.

First Solar has solar PV manufacturing plant in Kedah, Malaysia but has since scaled back production due to deteriorating demand in European market. I think we should increase solar panel usage domestically rather than depending too much on export. Get the state governments to contribute to the FIT fund coffer and revise the quota for both individual and non-individual rooftop/solar farm installations.

Create domestic market for panels you produce locally. What message are you sending to the world when you produce a lot of panels but you yourself don't use them?

Read more: http://www.smh.com.au/environment/energy-smart/450m-solar-project-for-outback-nsw-20120609-202cd.html

7.5MW Solar Farm in Thailand

Sonnedix Group and First Solar have announced in February 2012 the completion of works on the Nakhon Ratchasima solar farm in the Khorat region of north eastern Thailand. The 7.5MW photovoltaic plant, based on First Solar's cadmium telluride (CdTe) modules, will meet the annual electricity needs of more than 5,100 homes.

Image: Sonnedix solar

A Buddhist inauguration ceremony at the power plant. Image: Sonnedix solar

The solar power plant, one of the biggest in Thailand (as in February 2012), was built by Sonnedix with support of Assyce Fotovoltaica and Ch. Karnchang Group using around 95,000 of First Solar's innovative CdTe thin-film solar modules.

Nakhon Ratchasima Solar Farm 

Sonnedix is a global solar power producer whose management has a track record of more than fifteen years in Asia. The project in Nakhon Ratchasima is its first to become operational in Thailand and is understood to serve as its strong base for developing and building utility-size solar farms and large rooftop solar power plants.

Covering around 20 hectares, the Nakhon Ratchasima Solar Farm can supply enough electricity to meet the annual needs of about 5,100 average Thai homes. It is expected to generate more than 10.5 GWh of clean, green electricity per year, offsetting carbon dioxide emissions of more than 6,500 tons a year.

The project in brief

Solar farm size/capacity: 7.5MWp (DC)
Farm area:                      Approx. 20 hectares
Approximate supply to:  5,100 average homes
Location:                        Nakhon Ratchasima province, Thailand
Solar modules:               cadmium telluride (CdTe), F280 from First Solar
Inverter:                          Ingecon 500 HE TL from Ingeteam
Transformers:                 Tirathai
Amount of CO2 emissions avoided: Approx. 6,500 tonnes/year 


Interesting Venture by Thai government

The completion of the solar farm shows the commitment of the Thai government in reducing fossil fuel dependence and greenhouse gas emissions. This project is also touted to have the smallest carbon footprint of any current PV technology. 

This is a combine effort and partnership of Sonnedix Group, First Solar and the Thai government. Another partner, a Spain-based Assyce who carried out the engineering, procurement and construction on the project showed that Thailand is prepared to work with foreign companies to speed up the growth of its Renewable Energy program.

What about Malaysia?

Where is Malaysia in terms of implementation of the solar PV works to generate solar energy? Compared to Thailand, we are 'crawling'. In terms of producing solar modules, we are currently the world's third, just behind Germany and China.

Is Malaysia intending to be the major producer/manufacturer of Solar PV modules but not generating solar energy itself?