First Solar has announced that it has purchased Element Power’s 1.5GW project pipeline for the US and Mexico.
A statement released as the company announced its second quarter financial results confirmed it has acquired the portfolio of projects, all in differing stages of completion.
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The cost of the deal has not been revealed.
“Today we announced that we purchased a 1.5GW portfolio of US and Mexico assets in various stages of development from Element Power,” said James Hughes, CEO, First Solar during a results conference call with analysts.
“Strategic interconnection and land positions facilitate accelerated competitive positioning in several emerging US markets such as Georgia and North Carolina, Texas, Colorado and Illinois. It has also optimised our pipeline in established markets such as California and Nevada.
“The Mexico project pipeline also strategically positions First Solar for our entry into that market,” said Hughes.
The Mexican government is due to announce reforms to its electricity market this week that are expected to result in the effective end to the state-run monopoly opening the market to new electricity distributors.
“We are excited by the opportunity to explore new relationships with commercial and industrial customers there and to establish a strong initial presence in the region. The purchase of Element is also an example of the use of proceeds for pipeline acquisitions which we indicated in connection with the recent equity offering,” said Hughes.
“We continue to see similar opportunities in sustainable markets around the world including Japan, Europe and India,” he added.
First Solar now has potential bookings of 8GW with 1GW of module only sales and 1.5GW of mid- to late-stage deals and around 6.6GW under development for the next 12 to 24 months.
“This reflects the fact that we have lower demand requirements in the short term and that we are focusing on replenishing our pipeline primarily in 2014 and beyond. We believe that the ratio of mid to late deals, early stage opportunities as a healthy proportional distribution,” said Hughes.
Opportunities outside of the US now represent 51% of the company’s total prospects with 853MW of potential bookings in Southern Africa.
“This is perhaps the best illustration to-date into progress that we're making in creating demand in sustainable markets and gives us confidence in our ability to replenish our pipeline going out to 2016 and beyond,” said Hughes.
First Solar also announced during the conference call that it had acquired GE’s thin film intellectual property rights and would collaborate with the industrial giant on future projects and further research and development.
