Sharp moves to offload European solar cell business
3Sun is the equal joint venture between Enel Green Power, Sharp and STMicroelectronics.
The deal will see Enel Green Power commit to acquire Sharp’s equity stake in Enel Green Power & Sharp Solar Energy Srl (ESSE), an equal joint venture created to develop, build and operate photovoltaic plants in the EMEA area, using the photovoltaic panels manufactured at the 3Sun Srl plant.
The off-take agreement is a contract under which Enel Green Power and Sharp committed to purchase the entire output of the 3Sun Catania facility, which currently manufactures around 200 MW of thin-film, multi-junction photovoltaic panels a year.
Sharp stated that in the face of a deterioration in the European economy, revisions of the FIT (Feed-in Tariff for electric energy) policies of major countries, and the more sudden than expected drop in market prices for solar cell modules and other changes of the business environment, it became necessary for Sharp to restructure its solar-cell business in Europe.
The panels produced at the factory, which are well-suited for high-temperature applications, are used by Enel Green Power to build its photovoltaic plants in the various geographical areas of emerging countries envisaged in the 2014-2018 Business Plan, including South America and South Africa. Specifically, in South Africa, the company was awarded the right, in October 2013, to enter into contracts for the supply of power from photovoltaic plants in the amount of more than 300 MW of installed capacity.
The consideration due to Enel Green Power from Sharp is 95 million euros.
Once the acquisition of the equity stake is formalized, Enel Green Power will hold 100% of ESSE.
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