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Future investment in S$6.3b solar plant may be affected
By Rachel Kelly, Channel NewsAsia | Posted: 31 October 2008 1909 hrs
SINGAPORE: The first phase construction of a S$6.3 billion solar plant in Singapore is well underway.
Norway's Renewable Energy Corporation (REC) is building the project and it expects Phase One – worth some S$3 billion – to be completed according to schedule.
But in light of the current credit crunch, the company said the outlook for the solar industry is cloudy, and this could affect future development plans and investment.
Erik Thorsen, president & CEO, REC, said: "I think every project has difficulty obtaining financing in today's environment, and that's why I'm very glad that we actually did our financing of Phase One before this turmoil... But what the impact could be on future phases is not very visible at this moment."
Operations at the plant will begin in the first quarter of 2010, and it will reach full capacity in 2012 when it produces 550MW of cells and 590MW of modules.
The solar plant, which is expected to be the largest solar cell manufacturing facility in the world, will have an annual turnover of S$2.5 billion to S$3 billion.
REC said it has its hands full for the next two years, with S$15 billion worth of orders for its Singapore plant. The plant is one of a number of multi-billion-dollar projects that were announced in Singapore in the past year.
The solar industry has been growing at a pace of 40 per cent to 50 per cent a year since 2002.
Minister for Trade and Industry Lim Hng Kiang said: "Amidst the current financial crisis and global economic slowdown, REC's Phase One investment of about S$3 billion is not only one of the largest investments ever made in our city state, but also one which reflects confidence in the strong fundamentals of our diversified economy."
The first phase of the plant is expected to create some 1,300 jobs and contribute to Singapore's growing status as an energy hub.
[email protected]
By Rachel Kelly, Channel NewsAsia | Posted: 31 October 2008 1909 hrs
SINGAPORE: The first phase construction of a S$6.3 billion solar plant in Singapore is well underway.
Norway's Renewable Energy Corporation (REC) is building the project and it expects Phase One – worth some S$3 billion – to be completed according to schedule.
But in light of the current credit crunch, the company said the outlook for the solar industry is cloudy, and this could affect future development plans and investment.
Erik Thorsen, president & CEO, REC, said: "I think every project has difficulty obtaining financing in today's environment, and that's why I'm very glad that we actually did our financing of Phase One before this turmoil... But what the impact could be on future phases is not very visible at this moment."
Operations at the plant will begin in the first quarter of 2010, and it will reach full capacity in 2012 when it produces 550MW of cells and 590MW of modules.
The solar plant, which is expected to be the largest solar cell manufacturing facility in the world, will have an annual turnover of S$2.5 billion to S$3 billion.
REC said it has its hands full for the next two years, with S$15 billion worth of orders for its Singapore plant. The plant is one of a number of multi-billion-dollar projects that were announced in Singapore in the past year.
The solar industry has been growing at a pace of 40 per cent to 50 per cent a year since 2002.
Minister for Trade and Industry Lim Hng Kiang said: "Amidst the current financial crisis and global economic slowdown, REC's Phase One investment of about S$3 billion is not only one of the largest investments ever made in our city state, but also one which reflects confidence in the strong fundamentals of our diversified economy."
The first phase of the plant is expected to create some 1,300 jobs and contribute to Singapore's growing status as an energy hub.
[email protected]
