Sharp sets sights on Med's solar boom

Renewable energy project developers may be finding it increasingly tough to find capital, but apparently nobody has yet told electronics giant Sharp and engineering goliath GE.

The two companies have this week announced plans for multibillion renewable energy investments on opposite sides of the Atlantic, predicting that the clean energy sector will continue to prosper, despite the current economic downturn.

Sharp announced yesterday that it is to team up with Italian utility Enel to develop solar power plants across the Mediterranean region, starting with the construction of a number of photovoltaic production plants across southern Italy with combined annual capacity of 189MW and a new thin film plant boasting 480MW of capacity.

The two companies said they would sign a memorandum of understanding next month and launch a new joint venture early next year. The new company will then begin work on building the new productions plants, with a view to having the thin film factory online by 2010 and the PV plants operational by 2012.

Financial details of the project were not disclosed, but the Nikkei business daily reported that the new venture would require investment of about $1.6bn (£1bn).

The two companies said that it intended to use the new Italian factories as a springboard to address the growing market for solar panels across Southern Europe. Earlier this year, countries bordering the Mediterranean announced a target to install 20GW of solar capacity across the region by 2020.

Speaking to newswire AFP, Sharp executive vice president Toshishige Hamano said that the new production capacity was needed to meet booming demand for solar panels.

"If you look at the market, it is clear that by 2010 we will see insufficient supply of solar power related products," he said. "Our plan to build the factory will not be affected by the current financial crisis."

Meanwhile, GE announced earlier this week that it is to team up with Canadian energy firm Plutonic Power Corporation to table bids for two hydroelectric power projects in British Columbia that will cost a combined $4bn.

The two run-of-river hydroelectric developments in the Toba and Bute Inlets along British Columbia’s southwest coast are expected to generate about 1,200MW of clean energy, providing enough power for around 330,000 homes.

With capital costs estimated at more than $4bn, GE Energy Financial Services said that it will either fund or arrange equity contributions to the projects, subject to such due diligence being completed.

Mark Tonner, managing director of Canada at GE Energy Financial Services, said that the move underlined GE's ongoing commitment to the renewable energy sector.

"Our joint bids with Plutonic show our support of green energy generation in British Columbia, potential progress toward our goal of investing $6bn in renewable energy worldwide by the end of 2010, and reinforcement of GE's ecomagination [initiative]," he said.