GE Agrees to First Solar Collaboration, Moves on Japan's Biggest Solar Project

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--GE Energy (NYSE:GE) (Fairfield, Connecticut) is returning to its accustomed comfort zone as a solar power leader, following a period when it set aside such ambitions as the international solar panel/wafer industry went through a price and development shake-down.

Last month, it was reported that GE had extended its technical collaboration with specialized manufacturer First Solar Incorporated (NASDAQ:FSLR) (Tempe, Arizona) to develop state-of-the-art, utility-scale photovoltaic (PV) solar power plant designs.

The collaboration between the two companies brings together First Solar's thin-film cadmium telluride (CdTe) modules with GE's new 4-megawatt (MW) ProSolar 1,500-volt inverter /transformer system. The CdTe modules incorporate advanced technologies for optimal performance across 1,500-volt, direct-current (DC) applications. When this is combined with the ProSolar inverter/transformer, it increases the magnitude of the solar array served by each inverter.

The collaboration reduces the number of inverter/transformer stations required for each plant to convert from DC to alternating current (AC). New engineering design for the power plants will allow for the generation of high power at low installation and maintenance costs.

In 2013, GE traded its thin-film solar panel technology to First Solar for a minority stake in the latter. First Solar then acquired a technology from GE to make advanced, thin-film solar panel technology and enable it to counter strong competition from cheaper alternatives. This improved the efficiency of the panels and reduced costs of solar-power production. It also gave First Solar a significant cost advantage over its competitors.

Now, GE Energy Financial Services is planning to take control of Japan's largest solar power project, which is on a 500-hectare salt field in Setouchi, in the Okayama prefecture. The 230-megawatt (MW) plant is expected to begin commercial operations in 2018. Total investment in the projects is expected to be about $775 million.

GE plans to acquire a major stake in the company and operate the project, which was established by a Tokyo-based asset management federation that included Goldman Sachs (NYSE:GS) (New York, New York) and IBM Corporation (NYSE:IBM) (Armonk, New York) .

The final profile for project funding and design specifications are under discussion.

For related information, see November 19, 2013, article - 'Middle Solar' Projects Take Leading Role in Japan's Renewable Energy Market.

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