The US International Development Finance Corporation (DFC) has approved up to $500 million of debt financing for US-based First Solar’s vertically integrated photovoltaic (PV) solar module manufacturing facility in Tamil Nadu.
The facility has a projected annual capacity of 3.3 gigawatts (GW), according to a statement from DFC on Tuesday.
The new facility’s production is expected to sell mainly in the domestic market.
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“DFC is thrilled to be in a position to support First Solar’s new venture in India, which will boost solar panel manufacturing capacity for a key ally and help mobilise the industry to take up better standards that align with US values,” said Dev Jagadesan, DFC’s Acting Chief Executive Officer.
This transaction is part of the US’s effort to drive alternative supply chains and articulate a vision for climate finance, he added.
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First Solar produces ‘thin film’ solar panel modules, which do not use polysilicon. “First Solar, which was the first of the world’s ten largest solar manufacturers to join the Responsible Business Alliance, will replicate its industry-leading transparency and traceability protocols in India, amplifying efforts to boost supply chain transparency throughout the renewable energy sector,” the release stated.
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