Investor Contacts: Media
Contacts:
First Solar First
Solar
Larry Polizzotto Alan
Bernheimer or Ted Meyer
lpolizzotto@firstsolar.com 602-414-9361
Luke Fairborn media@firstsolar.com
lucas.fairborn@firstsolar.com
602-414-9315 NextEra
Energy Resources, LLC
Media
Line: (888) 867-3050
FOR
IMMEDIATE RELEASE
First Solar Sells 550-Megawatt Desert
Sunlight Solar Farm, Among World’s Largest
Hiring already under way of up to 630 people
TEMPE, Ariz., September 30, 2011 –First Solar, Inc. (Nasdaq:FSLR) today announced completion of the sale
of one of the world’s largest photovoltaic (PV) solar power projects – the
550-megawatt (AC) Desert Sunlight Solar Farm near Desert Center, Calif.
First Solar – which will continue to build and
subsequently operate and maintain the project under separate agreements – has sold the
project to affiliates of NextEra Energy Resources, LLC, the competitive
energy subsidiary of NextEra Energy, Inc. (NYSE:NEE), and GE Energy Financial
Services. First Solar estimates that Desert Sunlight will employ up
to 630 people for construction, which has begun. Converting sunlight into
electricity, the solar power project will provide enough clean, affordable energy
to power approximately 160,000 California homes and displace 300,000 metric
tons of greenhouse gas emissions per year – equivalent to taking 60,000 cars
off the road. Total indirect local economic benefits to Riverside County, where
the solar project is located, are estimated at $336 million, the majority of
which will be generated during construction with the remainder over the minimum
25-year operating period (according to an economic benefits study by Coachella Valley Economic Partnership and The Brattle Group),
including nearly $200 million in wages. Indirect benefits result from local
business-to-business transactions, for example local purchase of building
materials. The project is expected to contribute approximately $27 million in
sales and property tax revenue to the county. Desert Sunlight will also help
Tapping the Desert’s
Sun
The project is located 35 miles west of Blythe and six miles north of
Desert Center in the Chuckwalla Valley on approximately 3,800 acres – with 200
more acres for related infrastructure -- of largely vacant land managed by the
Bureau of Land Management. First Solar will install its advanced thin-film PV modules,
which convert sunlight into electricity without producing emissions or waste or
using water. First
Solar will supply some modules from a new $300 million factory it is building in
Mesa, Ariz., that will employ 600 people to support Desert Sunlight and other U.S.
PV projects. Project construction began
this month, with full commercial operation expected by the first quarter of
2015.
Funding from Equity
and Debt
Affiliates of NextEra Energy Resources and GE Energy Financial Services have
each acquired 50 percent of the Desert Sunlight project. Financial details of
the transaction were not disclosed. A NextEra Energy Resources’ affiliate
will manage the project. The Desert Sunlight project’s
power will be sold under two long-term power purchase agreements:
a 250-megawatt agreement with Southern California Edison and a 300-megawatt
agreement with Pacific Gas and Electric Company.
The U.S. Department of Energy Loan Program Office on September 29 approved
a loan guarantee for the project. The project will not receive any cash
from the government through the loan guarantee; rather the DOE is partially guaranteeing
$1.46 billion in loans provided by a syndicate of private institutional
investors and commercial banks headed by lead lenders Goldman Sachs Lending
Partners LLC and Citigroup. The loan guarantee expanded the pool of potential
lenders to the project, encouraging development and deployment of clean energy,
jobs and reduction of the country’s reliance on fossil fuels.
“We are pleased to be
able to expand our position as North America’s leading generator of solar
power,” said NextEra Energy Resources President and CEO Mitch Davidson. “Acquiring
a 50 percent interest in the Desert Sunlight project is consistent with our
strategy to add fully contracted clean energy to our portfolio.”
“First
Solar is excited about the sale of such a ground-breaking PV solar project,
which will have profound environmental and economic benefits,” said Frank De
Rosa, First Solar Senior Vice President of Business Development--Americas. “We
look forward to working closely with the new owners as we build and operate the
facility, bringing jobs, renewable power and energy security to California and
the United States.”
In connection with
the sale of Desert Sunlight, First Solar is filing a Current Report on Form 8-K
with the Securities and Exchange Commission.
First Solar investors should refer to such Form 8-K, as it contains
important additional information, including information related to revenue
recognition for the project and certain possible payment obligations that apply
to First Solar. In addition, questions and answers regarding the Desert
Sunlight transaction are included as Exhibit 99.2 to the Form 8-K and can also
be found at http://investor.firstsolar.com. Further
details about the project can be found at: www.desertsunlightsolar.com
About
NextEra Energy Resources
NextEra Energy
Resources, LLC, is a clean energy leader and one of the largest competitive
energy suppliers in
About First Solar, Inc.
First Solar manufactures solar modules with an advanced semiconductor technology and provides comprehensive photovoltaic (PV) system solutions. The company is delivering an economically viable alternative to fossil-fuel generation today. From raw material sourcing through end-of-life collection and recycling, First Solar is focused on creating cost-effective, renewable energy solutions that protect and enhance the environment. For more information about First Solar, please visit http://www.firstsolar.com.
For First Solar Investors
This release contains forward-looking statements which
are made pursuant to the safe harbor provisions of Section 21E of the
Securities Exchange Act of 1934. The forward-looking statements in this release
do not constitute guarantees of future performance. Those statements involve a
number of factors that could cause actual results to differ materially,
including risks associated with the company's business involving the company's
products and services, their development, distribution and performance, economic
and competitive factors, the company's key strategic relationships, the ability
to obtain permits from governmental authorities for the project and litigation and
other risks detailed in the company's filings with the Securities and Exchange
Commission. First Solar assumes no obligation to update any forward-looking
information contained in this press release or with respect to the
announcements described herein.
NextEra Energy Resources Cautionary
Statements And Risk Factors That May Affect Future
Results
This press release
contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995.
Forward-looking statements typically express or involve discussion as to
expectations, beliefs, plans, objectives, assumptions or future events or
performance and often can be identified by the use of words such as “may,”
“plan,” “will,” “expect,” “believe,” “anticipate,” “estimate,” and similar
terms.
Although NextEra
Energy, Inc. (NextEra) believes that its expectations are reasonable, because
forward-looking statements are subject to certain risks and uncertainties, it
can give no assurance that the forward-looking statements contained in this
press release will prove to be correct, including NextEra’s
expectations with respect to the Desert Sunlight Solar Farm. Important factors could cause NextEra’s actual results to differ materially from those
projected in the forward-looking statements in this press release. Factors that could have a significant impact
on NextEra’s operations and financial results, and
could cause NextEra’s actual results or outcomes,
both generally and specifically with respect to the Desert Sunlight Solar Farm,
to differ materially from those discussed in the forward-looking statements
include, among others:
·
Inability to complete construction of, or
capital improvements to, the Desert Sunlight Solar Farm
or other NextEra power generation facilities
·
Inability to obtain the required regulatory
approvals and permits for the construction and operation of the Desert Sunlight
Solar Farm
·
Inability to obtain the supplies necessary
for the construction, operation, and maintenance of the Desert Sunlight Solar Farm
or other NextEra power generation facilities
·
Inability to hire and retain skilled labor
for the construction, operation and maintenance of the Desert Sunlight Solar
Farm or other NextEra power generation facilities
·
Changes in laws, regulations, governmental
policies and regulatory actions regarding the energy industry and environmental
matters
·
Inability of NextEra or its affiliates to
access capital markets or maintain their current credit ratings
·
Failure of the Desert Sunlight Solar Farm or
other NextEra power generation facilities to generate the expected amount of
electric generation
·
General economic conditions
·
Hazards customary to the operation and
maintenance of power generation facilities, including unanticipated outages
·
Unusual or adverse weather conditions,
including natural disasters
·
Transmissions constraints or other factors
limiting NextEra’s ability to deliver energy from NextEra’s power generation facilities
·
Volatility in the price of energy
·
Failure of NextEra customers to perform under
contracts
·
Increased competition in the power industry
·
Changes in the wholesale power markets
·
Costs and other effects of legal and
administrative proceedings
·
Terrorism or other catastrophic events
These foregoing
factors should be considered in connection with information regarding risks and
uncertainties that may affect NextEra’s future
results included in NextEra’s filings with the
Securities and Exchange Commission (SEC), which are available at the SEC’s
website at www.sec.gov.
Any forward-looking
statement speaks only as of the date on which such statement is made, and NextEra
undertakes no obligation to update any forward-looking statement to reflect
events or circumstances, including unanticipated events, after the date on
which such statement is made, unless otherwise required by law. New factors emerge from time to time and it
is not possible for management to predict all of such factors, nor can it
assess the impact of each such factor on the business or the extent to which
any factor, or combination of facts, may cause actual results to differ
materially from those contained or implied in any forward-looking statement.
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