Antinuclear

Australia is still an attractive market for utility scale solar power – says First Solar

Australia remains one of the most attractive growth markets, along with Chile, and north and South Africa

Solar Insights: How Australia trails the world in big solar REneweconomy By Giles Parkinson on 6 November 2012 “……First Solar’s bullish on costs First Solar, by contrast, is focused almost entirely on the utility scale market. To give some idea of scale of its business, it $9 billion in project sales over the next few years, including the 550MW  Topaz and Desert Sun projects in California.

CEO Jim Hughes says the industry remains challenged, but feels there are signs of stabilisation, despite (or maybe because of) the recent rash of bankruptcies. Hughes re-iterated that First Solar’s principal road map is to lower its levellised cost of energy to between $100 and $140/MWh. And he said recent developments suggested it could accelerate its timeline and deliver below those targets.  CFO Mark Widmar said the manufacturing cost per watt – including warranty, freight and end of life costs, was likely to fall below 60c by the end of next year.  This table shows the recent trajectory.

“This is very encouraging in an extremely competitive industry where the lowest cost providers with the most comprehensive and customized solutions will ultimately be the winners,” Hughes told analysts in a conference call. In the US, he anticipated a robust debate on incentives for renewables, such as the investment tax credit, as well as subsidies for fossil fuels. “(We) have an extreme degree of confidence in the overall competitiveness of solar as a part of the generation mix irrespective of where that debate falls out,” he said.

Hughes said Australia remains one of the most attractive growth markets, along with Chile, and north and South Africa. It is also about to start a 13MW project in Dubai, part of a $3 billion solar investment in that Gulf state. In India, the company would adopt a similar strategy of building one plant where it can gain an understanding of labour costs, supply chain relationships and operating conditions – as it had done in Australia with its “small” 10MW project near Geraldton – before moving on to larger projects.  “Our focus is on a grid-connected utility scale markets and in particular, a big focus on projects that are attracting debt finance and low cost of capital.” http://reneweconomy.com.au/2012/solar-insights-how-australia-trails-the-world-in-big-solar-32446

November 6, 2012 - Posted by Christina Macpherson | General News