First Solar projects still considered for DOE 1705 program

Last week the Department of Energy (DOE) announced that it was closing the 1705 Loan Guarantee program to new applicants, in light of limited funding, and a September 31 sunset date. At the same time it said some applicants were notified that the DOE did not think they’re projects were far enough along in the process to break ground by September 31. That’s not the case with First Solar, Inc. (Nasdaq: FSLR), it received letters regarding three of its projects, notifying the company that they will remain in the approval process.

The three plants, AV Solar Ranch One, Topaz and Desert Sunlight total 1,300 megawatts of solar generation. “First Solar is pleased that the DOE has recognized the importance and quality of these three utility-scale solar projects and looks forward to working with the DOE to advance the application process,” said First Solar spokesperson Alan Bernheimer. “We are hopeful that the projects will qualify for the 1705 program and will not speculate about alternatives,” he said.

Both the Desert Sunlight and the Topaz projects are supposed to be 550 AC megawatts each, and the AV Solar Ranch one would be 230 megawatts AC, according to First Solar. All three projects are slated for California.

They are not the first of the company’s projects to receive loan guarantees under the program. The company’s 290 megawatt Agua Caliente project, received a conditional commitment for a $967 million loan guarantee in January. First Solar is selling $800 million of the project to NRG. “Finalization of the Agua Caliente acquisition by NRG is contingent upon the close of the DOE loan guarantee,” Bernheimer said.

The news comes after First Solar’s recent announcement of a strategic partnership with China Power International New Energy Holding Ltd., under which the companies will look for opportunities for CPINE to invest in U.S. solar projects and collaborate with First Solar on projects in China. That doesn’t necessarily mean that they’ll partner with First Solar on these particular projects, however. “We have not indicated any specific projects that we are working on with CPINE,” Bernheimer said.

 

Image of the 80 MW Sarnia solar farm courtesy of First Solar