AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today announced that it jointly founded Star River Energy Corporation(1) with several insurance companies in Taiwan. In view of a positive outlook for the renewable energy and out of a commitment to build a low-carbon land, Star River Energy Corporation will dedicate itself to the management and the investment of power plants in Taiwan. AUO has demonstrated superior performance and solid operational capability in solar power plant management. With Star River Energy Corporation serving as a platform, AUO and its financial investment partners will jointly invest in well-performed solar power plants in Taiwan. This collaboration is not only a novel practice in Taiwan, but also a new milestone for the renewable energy industry in the country.
AUO has forged a vertically integrated solar value chain, including polysilicon, ingot, wafer, cell, module, and all-round power plant service. The Company's solar team has extensive expertise in solar project planning and execution, capable of providing one-stop service all the way from project development, engineering, procurement, and turnkey construction to 20-year operation and maintenance. Meanwhile, AUO integrates high efficiency solar modules and power generation systems to ensure project quality and power performance. The founding of Star River Energy Corporation will further enable AUO to support a more complete solar value chain.
Sungen solar power plant, to be sold to Star River Energy Corporation, is a rooftop project implemented by AUO at its Taichung site. Currently, 13.3 MW (Mega Watt) of capacity has been installed, with 20MW being the intended capacity. Sungen is the largest rooftop project in Taiwan(2) and also the first utility scale project built on high-tech LCD fabs, despite its construction difficulties. Rooftop utility scale projects utilize existing building space to save additional costs for land acquisition, and therefore increase the economic benefits of the power plants. The outstanding operation performance of Sungen solar power plant which offers stable and long-term investment returns, plus AUO's reliable capabilities to operate power plants, has served as the main reasons to draw the investors.
The innovative business model that cooperated by AUO and local insurance companies to jointly invest in solar power plants is expected to bring stable and long-term returns for those who are keen to invest in renewable energy, and create a sustainable and profitable sphere. It is hoped that through this investment platform, the company will have chances to collaborate with more clients and solar power plant developers to seize green business opportunities together and achieve win-win successes.
(1) Star River Energy Corporation is jointly founded by AUO and several insurance companies in Taiwan with an initial paid-in capital of NT$540 million. AUO owns 35% shareholding of Star River Energy.
(2) Based on the available market research information as of April 7, 2014.