Leading American solar module producer First Solar, which operates two manufacturing facilities in Vietnam, said on Thursday it has reached a multi-year order for 1.8 gigawatts of solar modules from EDP Renewables, the world’s fourth largest renewable energy producer.
The modules, which will be delivered up to 2028, will power U.S. projects developed by EDP Renewables North America, said First Solar (NASDAQ: FSLR).
EDP, Portugal’s largest utility, announced earlier this month it will step up investment and spend 25 billion euros ($27 billion) over four years to nearly double its renewable energy capacity to 33 gigawatts by 2026. EDP said 21 billion euros would be invested by its wind and solar unit EDP Renewables, and 4 billion euros would go directly to electricity grids.
As part of the ambitious investment, the giant plans to install 1.2 GW of new capacity in the Asia-Pacific region through its Singapore-based renewables subsidiary EDPR Sunseap.
In September, EDPR Sunseap acquired two solar projects in Vietnam’s south-central province of Ninh Thuan for $284 million, doubling its operational capacity in the country. The seller was Vietnamese firm Xuan Thien Group. EDPR Sunseap said the transaction was the first step in the duo’s cooperation to jointly explore opportunities in Vietnam, which is seeking to reach carbon neutrality by 2050.
In North America, EDP Renewables plans to add 4.8 GW of solar capacity from 2023-2026, First Solar said. The company added it is expanding its U.S, manufacturing footprint, which currently stands at more than 5 GW of annual nameplate capacity with three operating factories in Ohio.
The U.S. giant also runs a manufacturing plant in Kulim High Tech Park in the Malaysian state of Kedah, and two others in Ho Chi Minh City, Vietnam’s southern economic hub. First Solar has invested $830 million in the two Vietnamese facilities, located in Dong Nam Industrial Park in Cu Chi district.
First Solar marked a key milestone in Vietnam in early 2018 when it received the first equipment for manufacturing its latest, high-tech Series 6 PV module. The Series 6 product has helped First Solar become a leading photovoltaic technology manufacturer globally.