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First Solar Inc., headquartered in Tempe, Arizona, which is a global
leader in solar technology and market share, who produces thin-film
CdTe solar modules and provides utility power systems, is quickly
making headway in 2010 in the clean energy sector.
This company recently completed its partial acquisition of a solar
project development firm, Edison Mission Group's (EMG), based in
Irvine, CA. First Solar will acquire EMG's utility-scale solar projects
in California and the Southwest, aligning well with their core business strategy.
The EMG projects that First Solar is acquiring are primarily destined for private land, ranging from 20 to 150 MW, and are not yet under contract; however, the First Solar name-recognition and ability to utilize their own panels will facilitate deal-making with utilities and other parties. First Solar finished construction of its first California utility-scale solar power plant in December 2009, the 21 MW AC Blythe project, which was sold to NRG Energy and supplies electricity to Southern California Edison, who is a national leader in terms of its renewable energy portfolio, ranking among the Top 10.
In other developments, PNM, New Mexico's largest electric utility, has recently signed a contract with First Solar to build 22 megawatts (MW) of utility-scale photovoltaic (PV) solar power plants in New Mexico. First Solar will assemble the facilities using its advanced PV panels at five separate sites within PNM's service territory. The solar generation sites will be chosen based on cost, availability and suitability of land; the quality of a site's solar power output; environmental and permitting issues; and level of local support. One advantage of solar PV over competing concentrating solar power (CSP) technology is the lesser, rare desert water resources needed for operating the facility, as CSP requires frequent water cycling over the focusing mirrors for cooling and cleaning.
If this proposal is approved by state regulators, the 22 MW of new solar capacity has been estimated by PNM to eventually produce enough power to supply 7,000 average-sized New Mexico homes. A recent effort is underway between the New Mexico Public Regulation Commission (PRC) and PNM for the acquisition of 45 MW of utility-scale solar PV for PNM's portfolio by at least 2011. Construction on the first site is expected to start by 2011, and First Solar expects construction at all five sites to be completed by late 2011, leading to the creation of 100 construction jobs.
It is interesting that the majority of First Solar’s projects and manufacturing are based outside of Arizona, where it is headquartered. However, public policy and legislation are a major factor in explaining the reasoning. For instance, Arizona’s state renewable portfolio standard is one of the least aggressive in the country, only requiring 15 percent of its energy to be supplied by renewable sources by 2025; whereas, New Mexico requires a higher amount of 20 percent by 2020, in a shorter time span. Moreover, New Mexico has had substantial solar research and development and manufacturing for a longer period of time than Arizona, whose current manufacturing output, mainly only in Tucson, is negligible in terms of the overall industry. New Mexico has benefitted immensely from having world-renowned Sandia National Lab in Albuquerque and a more competitive suite of business incentives over Arizona, which is considering upgrading its incentive package for manufacturing of all sorts.
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Image:First Solar 2MW roof-top solar project in Fontana, CA
