Mumbai --
First Solar Inc., the only profitable panel-maker among the 10
biggest in the world, plans to develop solar farms in India as chronic
outages drive demand for electricity derived from sun power.
The target is to take at least a 20 percent share
of India’s photovoltaic sales by expanding beyond First Solar’s role as a
supplier, said Sujoy Ghosh, the new India head of the world’s biggest
thin-film panel maker. Demand will probably come from industrial and
commercial consumers without any government subsidies involved, he said.
The Tempe, Arizona-based company is betting that
building plants and selling solar power is a better way to make money
than competing with Chinese competitors on panel sales after prices fell
47 percent in the past year. India, which suffered the world’s biggest
blackout this month, has a 30 gigawatt backup power market, created by
factories and businesses that switch to diesel generators when power
goes out, according to the Ministry of New and Renewable Energy.
“Our focus really is to create a new stream of demand
in the market from industrial and commercial businesses,” Ghosh said by
phone. “That would require us to do a lot of the development” of
projects, including building, arranging financing and supplying modules,
he said.
Power Hedge
“As that self-generation market opens up in a country
like India with an 18 percent deficit, it would create a natural need
for investing into a manufacturing facility here to serve needs of the
market locally,” Ghosh said. “Once we turn on the switch, we don’t want
to turn it off.”
The most important factor determining whether to
invest in a factory is “predictable demand,” which would come from large
industrial companies and privately owned distribution utilities buying
solar for commercial reasons, he said.
In contrast, solar installations in Europe, the
world’s largest solar market, are going through a boom-and-bust cycle as
government subsidies are withdrawn. Demand in Germany and Spain may
fall by about 75 percent next year, according to Bloomberg New Energy
Finance.
First Solar on Aug. 2 reported an 81 percent jump in
second-quarter net income to $111 million after making a strategic shift
toward building solar farms with its modules. The nine other biggest
solar panel makers, including Suntech Power Holdings and Trina Solar
Ltd., reported losses in their last quarter, according to data compiled
by Bloomberg.
Copyright 2012 Bloomberg.
http://www.renewableenergyworld.com/rea/news/article/2012/08/first-solar-to-build-india-farms-as-outages-propel-sun-power
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