As China-based c-Si wafer producer LDK Solar moves downstream into PV module production, its new modules will now be insured for performance warranty by Munich Re. LDK Solar has also updated module shipment guidance for the first quarter of 2010, noting it expects to ship between 20 and 25MW and between 300 and 400MW of modules this year. Munich Re’s Special Enterprise Risk unit’s new insurance performance warranty covers the performance warranty of LDK Solar modules for 25 years. The warranty guarantees that the modules will perform to at least 90% capacity in the first 10 years and to at least 80% in the remaining 15 years.
“We are happy that we acquired LDK Solar as a new client. It shows that our innovative photovoltaic module guarantee cover is beginning to establish a standard in the industry. Investors and lenders will welcome this development,” commented Thomas Blunck, Member of the Board of Management at Munich Re.
Module producers, whether c-Si or thin film based, without a clear history of providing large-scale PV projects successfully have found it increasingly difficult to be selected for projects as financing criteria has become tightened, and fewer investment houses and banks are prepared to participate in the market. The performance warranty is a potential way for companies to gain ‘bankability’ status for projects.