Updated: The optimism from the first quarter was short-lived at JA Solar, which has warned investors that ASPs declined faster than expected in the second quarter, negatively impacting gross margins. Coupled to ‘high-cost inventory provisions,’ gross margins are expected to be in a negative low single digit range, according to a company statement.
Commercial operation has begun at California’s largest solar power project after NRG Solar and Eurus Energy America activated their 45MW Avenal Solar Generating Facility in Kings County. The facility was developed by Eurus and the electricity produced will be sold to Pacific Gas & Electric (PG&E) under separate 20-year power purchase agreements.
The continued construction and eventual interconnection of what will be the world’s largest solar PV power plant now seems assured. The US Department of Energy’s Loan Programs Office has finalized a $967 million loan guarantee for the 290MW (AC) Agua Caliente solar project in Arizona, thus triggering the purchase close of the project by NRG Energy from First Solar. The plant could start generating electricity for PG&E as early as the end of this year.
China-based PV cell and module manufacturer, Realforce Power Co has entered into a long-term wafer supply deal with GCL-Poly. Under the supply contract, GCL-Poly is providing a total of 4,200MW of solar wafer products starting from July 2011 to December 2016. A price adjustment mechanism is included in the contract, according to the wafer producer. GCL-Poly has provided wafers to the 3-year old start-up for some time.
ReneSola said it has progressed on two manufacturing fronts, with the start of trial production of its in-house steel wire used for slicing solar wafers and the development of a new generation of higher capacity casting furnaces.
Just across the border with California is Mexicali, Mexico, which has long been promoting its lower cost-base and unique location to the biggest market in the world. Citing the need to meet demand for the rapidly expanding North American solar market, SunPower said it will lease an existing building in Mexicali to build its E18 series, E19 series and world-record setting E20 series solar panels as well as its T5 solar roof tiles.
(UPDATED) First Solar has reported second-quarter 2011 net sales of US$533 million in the quarter, a decrease of US$34.5 million from the first quarter, which were a decrease of US$42.5 million from the fourth quarter of 2010. The CdTe thin-film leader noted that the sales decline was primarily due to lower average selling prices, which in turn were due to policy uncertainties in Italy, Germany and France, leading to weaker-than-expected demand.
One of the largest solar PV power plants in North America will be expanded, nearly quadrupling its generating capacity in a few years. Pacific Gas and Electric and Sempra Generation have signed a 25-year contract for a 150MW (AC) expansion of Sempra Generation’s Copper Mountain Solar complex in Boulder City, NV. First Solar will provide millions of ground-mounted thin-film CdTe panels and serve as the engineering, procurement, and construction (EPC) contractor for the 1100-acre project.
Despite current weakness in solar related equipment spending, due to weak demand for PV modules in the first half of the year and a longer than expected inventory build, GT Solar posted first quarter financial year revenue of US$231.1 million, compared to US$271.6 million last quarter and up 71% from the US$135.2 million of revenue in the first quarter of fiscal 2011. Record order backlog stood at US$2.3 billion.
