Enel, Sharp, STM Open Sicilian Plant Aimed at Mediterranean
Enel SpA (ENEL), STMicroelectronics NV (STM) and Sharp Corp. opened Italy’s biggest solar-panel plant to benefit from the Mediterranean basin’s growing renewable energy market.
The three spent a total of 300 million euros ($428 million) to 400 million euros on the venture to produce Sharp’s so-called multi-junction thin-film panels near Catania in Sicily. Initial capacity of 160 megawatts a year will rise to 480 megawatts.
“We are uniting our different know-hows to produce panels that we plan to market to the entire Mediterranean area,” Enel Chief Executive Officer Fulvio Conti said today in an interview at the plant. “While fossil fuels will continue to play a large role for some time, I see a very strong push towards renewable energy.”
Italy is trying to increase its renewable energy use after giving up a nuclear program following the March 11 accident at Japan’s Fukushima reactor. The European country currently gets 20 percent of its power from renewable sources and hydroelectric projects, and the remaining 80 percent from fossil fuels, mainly natural gas, according to data from grid operator Terna SpA.
“The fallout from Fukushima is forcing countries like Italy to focus on renewables and on new ways of diversifying their energy mix,” said Tatjana Eifrig, an energy analyst from Banca Finnat Euramerica based in Rome. “Italy will likely see a lot of growth in retail sales of panels for small companies and for households seeking energy self-sufficiency.”
‘Very Strong Expansion’
Installed solar energy capacity rose 73 percent globally to 39,529 megawatts in 2010, according to data compiled by the European Photovoltaic Industry Association.
“We forecast a very strong expansion in the Middle East and Africa region, which is just now beginning to develop,” Toshishiga Hamano, an executive vice-president at Sharp, told reporters today. “That is why we consider Catania a strategically placed location.”
The panels, which are engineered to maintain high energy conversion levels even in hot climates, will be sold in Europe, the Middle East and Africa by the sales networks of Sharp and Enel’s renewable energy arm, Enel Green Power SpA (EGPW), according to a joint statement by the three venture partners.
“It is one of the first cases of a vertically integrated cooperation between panel producers and energy providers,” Riccardo Amoroso, head of joint ventures for Enel Green, said in an interview. “The other interesting aspect is the low silicon content of these panels, which makes them less vulnerable to raw silicon price volatility.” Amoroso said the panels use 100th the amount of raw silicon used in traditional products.
The panels will also be used on solar farms run by Enel Green Power & Sharp Solar Energy S.r.l, a joint venture between Enel Green and Sharp. The venture aims to develop farms with 500 megawatts of capacity by the end of 2016, the companies said.
To contact the reporter on this story: Alessandra Migliaccio in Rome at amigliaccio@bloomberg.net.
To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net.
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