Sharp to Sign Agreement for production of Thin-Film Solar Cells

Sharp Corporation (below: “Sharp”) and Italy’s largest power company, Enel SpA (below: “Enel”), will establish a joint venture in the spring of 2009 to operate as an independent power producer (IPP*1) and will develop a number of photovoltaic power plants with a total capacity of 189 MW by the end of 2012.

A number of photovoltaic power plants will be set up mainly in southern Italy and will utilize thin-film solar cells, which offer superior power generating efficiency in hot-climate regions. The two companies are looking into expanding their IPP business in the future to cover countries of the Mediterranean region other than Italy with a view toward further strengthening their cooperative relationship.

Regarding cooperation in the production of thin-film solar cells, the plan is for Sharp, Enel, and a third European manufacturing company to construct a thin-film solar cell plant in Italy with the potential to expand annual production capacity to around 1 GW in the future. The initial phase of development will put in place a production system having an annual capacity of 480 MW, with the aim of starting operations around the middle of 2010.

The three companies are working out the details of establishing the joint venture to manufacture thin-film solar cells in Italy, and plan to sign a memorandum of understanding in December.

Geographically, Italy lies at the heart of a project adopted at the Union for the Mediterranean*2 summit held in July 2008, namely, a “Mediterranean solar plan” that aims to develop power generating facilities with a capacity of 20 GW by 2020. With an eye to such a plan, Sharp and Enel will work together in the future with the goal of strategically expanding renewable energy in Europe, including in the Mediterranean region.

Sharp is moving quickly to initiate the world’s first “solar business model” by joining with a power company in an integrated business approach—from manufacture of thin-film solar cells to IPP activities—and is actively working toward becoming a company providing total solutions based on solar cells.-Sharp