OT?: PowerLight, SunPower ink $330M deal
Thursday December 15, 4:07 pm ET
"Though increased demand for silicon chips in electronics -- particularly cell phones -- has contributed to the shortage, the real culprit is runaway demand in Germany, Spain and Japan, where government incentives encourage builders to use solar power."
PowerLight Corp. signed a $330 million deal to buy solar panels from SunPower Corp. over the next four years.
The supply agreement follows Berkeley-based PowerLight Corp.'s $70 million, four-year supply deal with Marlboro, Mass.-based Evergreen Solar Inc., signed Nov. 4. That deal has options to increase its value to $170 million.
A shortage of processed silicon used in photovoltaic cells has driven up prices for solar power projects and caused construction delays, so companies that design and sell solar electric systems have been trying to lock in supplies from manufacturers the way airlines like Southwest locked in lower fuel prices with long-term contracts.
Though increased demand for silicon chips in electronics -- particularly cell phones -- has contributed to the shortage, the real culprit is runaway demand in Germany, Spain and Japan, where government incentives encourage builders to use solar power.
SunPower (NASDAQ: SPWR - News) is based in Sunnyvale. Its CEO, Tom Werner, said the deal marks a milestone in his company's growth.
Published December 15, 2005 by San Francisco Business Times
Cash is King until further notice!!!
My comments on companies are usually my opinion of long term success (years). The PPS may go up or down greatly in the meantime depending on the number of greedy suckers with money.
