PARIS — Solar module manufacturer First Solar Inc. and EDF Energies Nouvelles, a 50-percent-owned subsidiary of France-based EDF group, have formed a venture in a view to build a solar panel manufacturing plant in France.

With an initial capacity of more than 100MWp per year, the plant represents an investment of 90 million euros. EDF Energies Nouvelles said it will finance half of the capital expense and plant start-up costs. In return, it will benefit from the plant's entire output for the first 10 years.

The plant, whose site location is expected to be revealed within the next few months, will produce solar panels based on First Solar's advanced, thin-film photovoltaic technology.

In 2008, EDF Energies Nouvelles raised 500 million euros to finance its expansion in the photovoltaic sector and set itself a target of installing 500MWp in photovoltaic capacity for its own account by 2012.

"Securing a competitive supply is essential for us to participate in the development of a large French solar market," commented Pâris Mouratoglou, chairman of the board of EDF Energies Nouvelles.

This new venture supports the goal of the French government to become a leader in sustainable energy technologies including solar electricity.

Visiting the National Institute for Solar Energy (INES) in Le Bourget du Lac, in the French Alps, in June, French President Nicolas Sarkozy indeed reaffirmed his intention to enhance the Government efforts to develop renewable energies while pursuing nuclear energy. He called for a convention on renewable energies and expressed his support to the second phase of INES, with 500 researchers by 2013.

"INES is a resounding success," declared Sarkozy. "INES II, we agree. This means that we will go up to 500 researchers. The Government is behind you. Move on, go for the second stage. Launch INES II. France has decided to invest in photovoltaics in the long term. There is no reason why our German friends should do better than us in the solar industry."