), a worldwide solar products manufacturer, inked a contract with
PT. Pembangkitan Jawa Bali Services (PJB Services), a business
wing of Perusahaan Listrik Negara ("PLN"), for the supply of 100
megawatts (MW) of photovoltaic modules (PV) for the development
of solar power plants in Indonesia.
As per the agreement, the two entities will pool resources on
matters related to the procurement, construction, operation,
engineering and maintenance of a roughly 100MW pipeline for the
solar PV power plants which includes PV hybrid solutions. The
advanced thin-film PV modules manufactured by FirstSolar and its
related system services as well as components will be used to
develop the large-scale solar plants.
The agreement is expected to meet the escalating demand for
renewable energy in Indonesia. The country is vehemently seeking
options for steadfast and cost-effective energy sources.
FirstSolar with this contract will enter the Indonesian market
for the first time.
The company has been steadily foraying into the prime Asian
markets and has considerably expanded its geographic footprint,
globally. FirstSolar with its increasing focus on India completed
an agreement for the supply of 50 MW of thin-film solar modules
to Kiran Energy Solar Power Pvt. Ltd. and Mahindra Solar One Pvt.
Ltd. The modules will be utilized for two solar PV power plants
to be constructed in the Indian state of Rajasthan. The company
also announced its plans to collaborate with India's Tata
Enterprises for the supply of modules to help off-grid villages
in India's northern region to receive clean energy for safe
drinking water and irrigation.
The solar industry is currently witnessing a downward trend in
average selling prices. Also, the current macro environment does
not bode well for the solar industry, which thrives mainly on
subsidies and grants.
However, we believe the increasing usage of solar energy as
power source in the U.S. will enable FirstSolar to accrue
substantial gains in the coming years. In addition, the company's
strategic operational expansion in Asia will help sustain its
For 2012, First Solar expects adjusted earnings to be in the
range of $4.20-$4.70 per share. Sales are expected in the band
$3.6-$3.9 billion. The Zacks Consensus Estimates for the third
quarter and full year 2012 earnings presently stand at $1.10 per
share and $4.47 per share, respectively.
Suntech Power Holdings Co. Ltd.
) initiated its largest silicon photovoltaic 44 MW power plant in
Thailand. The program is expected to meet 20% of the country's
total renewable energy consumption by 2022.
Arizona based FirstSolar engages in the design, manufacture,
and sale of solar modules using a thin-film semiconductor
technology in the U.S. and internationally. It currently has a
Zacks#3 Rank (Hold rating). Over the longer run we maintain our
Neutral recommendation on the company.
FIRST SOLAR INC (FSLR): Free Stock Analysis
SUNTECH PWR HLD (STP): Free Stock Analysis
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