The US International Development Finance Corporation (DFC) has announced that it has partnered with First Solar, Inc. to support the company’s previously announced vertically integrated photovoltaic (PV) solar module manufacturing facility in Tamil Nadu. Debt financing up to US$ 500 million has been approved for Estimated annual capacity of 3.3 gigawatts (GW).
The debt financing will be subject to the negotiation of definitive agreements between DFC, the Development Bank of America, and First Solar, the largest US solar manufacturing company.
“DFC is well positioned to support First Solar’s new venture in India, which will drive solar panel manufacturing capacity to a key partner and help the industry adopt better standards,” said Dev. Jagdesan, Acting Chief Executive Officer of DFC said in a press release. “This transaction represents another milestone in America’s effort to drive alternative supply chains and articulate a vision for climate finance that drives our development mission.”
Like the US, India has recognized that it should shape its sustainable energy future and has sought to supercharge the expansion of its domestic solar manufacturing capacity, said Mark Widmar, Chief Executive Officer of First Solar.
“DFC’s intent to support this facility has the potential to create a high-visibility, repeatable blueprint to enable the clean energy ambitions of like-minded countries through American innovation, ingenuity and competitiveness.”
This investment will further DFC’s commitment to diversify supply chains, a press release said. First Solar produces “thin film” solar panel modules, which do not use polysilicon. First Solar, which was the first among the world’s ten largest solar manufacturers to join the Responsible Business Alliance, will reiterate its industry-leading transparency and traceability protocols in India, enhancing efforts to promote supply chain transparency in the renewable energy sector .
First Solar announced its intention to build the India facility in July 2021. The company expects to reach 16GW of global manufacturing capacity in 2024.
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