The agreement regarding the PV-panel factory follows an MoU signed in May 2008 by Enel Green Power and Sharp. STMicroelectronics has joined this strategic partnership.
The factory, located in Catania in the existing M6 facility to be contributed by STMicroelectronics, is expected to have an initial production capacity of 160MW per year. The plant’s capacity is targeted to be gradually increased to 480MW per year over the next years. PV panel manufacturing at the Catania plant is expected to start at the beginning of 2011.
The project of 160MW will require a total investment of EUR320m and will be funded by a combination of equity, state grants and project financing with no recourse to the JV shareholders beyond their quota in the JV. Each partner will subscribe one third of the equity – an expected contribution up to EUR70m each, either in cash or in-kind – and will hold one third of the shares in the new JV company.
The factory output will be used to serve the solar markets in the EMEA (Europe, Middle East and Africa) region with a particular focus on the Mediterranean area. In this region, Enel Green Power and Sharp already have sales networks and also plan to jointly develop solar farms. Enel.si, the Enel Green Power company specializing in the installation of PV systems in the retail market, will also participate in the marketing effort, offering panels directly and through its franchisee network of over 500 qualified installers in Italy.
Enel Green Power and Sharp have signed an additional agreement aimed at the creation of an equal JV to develop solar farms. The goal is to install cumulative capacity at a level of 500MW by the end of 2016, making use of the PV panels manufactured at Catania factory. The effectiveness of the agreements signed by the parties is conditional upon the clearance released by the relevant authorities concerned.
