Green Energy Reporter

First Solar announced this afternoon plans to buy the project portfolio of rival OptiSolar in an all-stock deal worth $400 million. The projects include a power purchase agreement with Pacific Gas and Electric for the  550 MW  Topaz solar project in Central California; 1,300 MW of solar projects in the pipeline and  federal land claims  on 136,000 acres in the Southwest desert that could support 19,000 MW in new generation.

The deal will increase First Solar’s position with electric utilities. In this credit-challenged environment utilities seem to be  the only ones able to carry projects, as underscored by last week’s announcement by PG&E, which said it would directly invest in a 1,300 MW solar project. For more on this, see here.

This is the second solar M&A transaction of the day. Earlier, MuniMae, citing the tough credit conditions, announced the sale of most of its renewable energy business to Spain’s Fotowatio. For more on this, see here or scroll down.

Despite a solid deal with PG&E, OptiSolar was unable to secure loans to finance the construction of a manufacturing plant, forcing it last November to lay off half of its work force.

Green Wombat reports that the company has applied for a $300 million federal loan guarantee to fund existing operations and  restart construction on the plant.  Although exiting the generation business, OptiSolar plans to continue to manufacture solar cells.

Go to First Solar press release

Go to article from the Green Wombat