Topaz Solar's Acquisition: Brightening The Solar Outlook Or A Standalone Case?

With the US solar industry experiencing an annus horribilis in 2011, the sector has welcomed news that MidAmerican Energy Holdings is to acquire First Solar 's Topaz Solar power plant. The decision has been portrayed as a proof that solar energy can be a commercially viable technology even without the support of governmental loan guarantees. We however believe that the difficulties for the industry are far from over, due to high regulatory uncertainty and stark competition. The acquisition of Topaz Solar can be seen more as a standalone case, underpinned by the advantageous power purchase agreement the plant obtained in 2008.

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