GE & First Solar to enter into Technology & stake sell and purchase agreement...

 

General Electric (GE) and First Solar have decided to join their competing thin-film solar panel technologies in an effort to improve efficiency and decrease costs.

First Solar is the world's largest producer of thin-film panels and among the world's largest solar farm developers. GE's thin-film technology has performed well in lab tests, but is not manufactured at large scale.

As announced by the companies on 6th August, they will enter into agreements for the technology tie-up and stake purchase.  

As per the agreement contract:

• First Solar will acquire GE's technology for making thin film panels.
• In return, GE will receive 1.75 million shares of First Solar stock. That represents $82 million, and 2 percent of First Solar's outstanding shares.
• First Solar will attempt to incorporate GE's technology into its extensive and well-developed manufacturing process.
• GE will purchase and brand First Solar panels for its own installations.

According to sources, the reason behind this move of GE is the glut of solar panels on the market and falling prices.

Due to this, GE's Denver factor which was having annual capacity of 400 MWs will be shut down along with a research center with around 400 people loosing their jobs.

---

More literature on this...

• http://economictimes.indiatimes.com/news/international-business/ge-takes-stake-in-first-solar-inc-to-share-technology/articleshow/21672437.cms
• http://www.lakewyliepilot.com/2013/08/06/2010823/ge-scraps-nations-largest-solar.html

---

Read More...

GE's Financial Services Arm has invested Rs. 257 Crores in Gati Infrastructure Ltd...

 

GE Energy Financial Services, has invested around Rs. 257 Crores in Gati Infrastructure Ltd (GIL) through a share subscription agreement.

Gati Infrastructure is owned by Mahendra Agarwal, founder and CEO, and his group firm Amrit Jal Ventures Ltd, an owner of special purpose vehicles (SPVs) with three hydro-electric power projects under construction in Sikkim.

Gati Infrastructure focuses on renewable energy and has a portfolio of solar, hydro and coal projects. The firm is backed by River Valley Hydro Venture Pte Ltd which invested $6.96 million in the company in 2007.

 

Gati Infrastructure, has recently commissioned its firs hydro electric power plant having capacity of 110 MW in Sikkim having investment outlay of Rs. 1188 Crores.

According to sources Gati Infrastructure has an enterprise value (EV) of around Rs. 1,400 Crores.

GE Energy Financial Services provides financial and technological investment in energy infrastructure projects. According to the company, it has committed more than $9 billion for wind, solar, biomass, hydro, geothermal and other renewable power projects.

For the deal between GE Financial Services and Gati Infrastructure, IDFC acted as the lead financer with a loan at project level and Capital Fortunes Private Ltd was the advise and sole arranger for this transaction.

 

---

Additional Reading...

• http://www.vccircle.com/news/power/2013/07/30/ge-energy-invests-43m-gati-infra-hydro-power-project
• http://economictimes.indiatimes.com/news/news-by-industry/energy/power/gati-infra-to-invest-rs-1188-crore-in-sikkim-power-project/articleshow/21487392.cms

---

Read More...

GE to localise the wind turbine components…

GE Energy is considering to focus on localise the components of wind turbine for the Indian Wind Energy sector for its 1.5 MW and 1.6 MW ratings.

 

As said by Mr Banmali Agrawala, President & CEO, GE Energy,

“The company will be launching products of larger capacities to capture low wind speeds as prevalent in India. The products will be coming out in a year's time and have been developed here. Also, the company is seeing interest in these localised products from other emerging markets as well. GE at present makes wind turbines of 1.5 MW and 1.6 MW capacities.”

Going forward, apart from manufacturing products, GE Energy would be open to providing support to customers in the development phase of the project. Support would be in things like financial structuring or helping with development model and also installation, transportation or commissioning of projects.

 

However, the company, unlike many others in the business like Suzlon or Gamesa, will not provide “packaged services” of providing land along with wind assets. “It does create uncertainties for the business, but we recommend to customers that the land should be acquired by them,” Mr Agrawala said.

 

According to Mr Agrawala, renewable energy especially wind is a “critical part of our business and therefore we are increasingly localising products for the Indian market.” In the renewable energy sector, the company currently manufacturers equipment for power projects, like wind turbines, inverters and switch gears.

 

The products are manufactured at its plant in Pune and the company is in the process of expanding its facility there. While the products will be made for the Indian market but will also use it as a base for exports, Mr Agrawala said.

Read More...