PV Enterprise Sweden Signs 114 MW Solar Cell Agreement

PV Enterprise Sweden has signed a delivery contract for 114 megawatts (MW) of solar cells through 2010 with the Taiwanese cell manufacturer Gintech. The deal is worth an estimated SEK 2.2 billion [US$ 325 million].

In related news, the company signed a sales agreement with the German company EST-Energy for 6.5 MW of solar panels through 2009. EST has the option of increasing that amount to 10 MW over the period of the contract. The total value of the order during the period amounts to between SEK 175 million [US$ 26 million] for 6.5 MW and SEK 275 million [US$ 41 million] for the additional 3.5 MW.

“Since we now know that we have good access to solar cells in future, production has been tested for a higher production rate, and considering the orders received this year, the time is right to announce our objective for operations over the next few years. This means that in 2008 we will produce and sell 30 MW, and that we will subsequently double production and sales in both 2009 and 2010…The objective for our operating margin is 12%,” said Kristoffer Lind, Managing Director of PV Enterprise Sweden AB.

“Considering the recently announced orders, and the great amount of interest that we have seen from our primary markets Germany, Spain, and Italy, we feel that our objective is realistic,” added Lind.