Mumbai: Moser Baer India has announced that its subsidiary Moser Baer Photo Voltaic Ltd (MBPV) has signed an agreement with China-based LDK Solar for sale and delivery of high quality multicrystalline silicon wafers to MBPV over a ten-year period commencing in mid-2008 through 2017.

Under the terms of the agreement, LDK Solar will deliver multi crystalline solar wafers to MBPV for producing PV cells that can generate 640 MW of solar power. MBPV will make a suitable prepayment to LDK Solar reflecting the contract value. The ten-year contract is based on a blend of ‘take-or-pay’ and market linked pricing mechanism.

"We are very pleased to enter into this mutually equitable agreement with LDK Solar to secure quality solar wafers," commented Moser Baer Photo Voltaic chief executive Ravi Khanna. "We Look forward to a long-term, relationship with LDK Solar as we work towards rapidly increasing our scale of operations and capacity."

Globally, given the rapid growth of the photovoltaic industry, there is a shortage of silicon wafers, a key raw material for the photovoltaic industry. While the demand continues unabated, the supply is expected to remain tight in the near to medium term. An assured supply of silicon wafers will provide a significant competitive advantage to MBPV in the current industry scenario.

 

The delivery of wafers under the new contract is expected from July 2008 and will continue over a ten-year period from the first shipment. The contract assures a regular supply of silicon wafers over the long term.