Taiwan's Green Energy Tech to invest $16m in Spanish solar farm

Green Energy Technology, one of Taiwan's largest solar wafer makers, is investing $16m in a solar farm to be built in Spain as part of its efforts to gain a better footing in the European market.

The project will help Green Energy push its wafers and thin-film photovoltaic modules into Europe and build its experience in the PV power generation segment, the company said in an announcement to the Taiwan Stock Exchange earlier this week.

Green Energy did not reveal the name of its Spanish partner in the solar farm, nor provide the location or further details of the project. The company, which reported pre-tax losses of $2.8m for the first six months of the year, said it planned to finance the investment through bank loans and the issue of global depository receipts.

The move comes amid an industry slump as prices of solar modules fall as a result of oversupply, while demand shrinks from the economic downturn.

Taiwan's solar companies are finding it difficult to compete with rivals in China, where subsidies for solar projects have helped buoy the industry.

In addition, Chinese PV module makers, such as Suntech Power and Yingli Green Energy, have reportedly gained an upper hand over Taiwanese rivals because of better vertical integration.

Taiwan-based industry sources told local DigiTimes newspaper earlier this week that Chinese companies have integrated production of solar-grade silicon materials, wafers and solar cells, which minimises costs and enables them to offer lower prices than their Taiwanese competitors.