EDF Energies Nouvelles said Thursday it has signed a memorandum of understanding with the European Investment Bank (EIB) to get €500 million ($716.2 million) to pay for building solar power plants in France and Italy.

The financing would be able to cover up to 50 percent of the cost for each of the projects EDF wants to build from 2010 to 2012. EDF didn't specify how many projects or their sizes will be covered by EIB's investments. EDF will have to raise money from other banks as well.

Paris-based EDF did say the money would help pay for the 2010 construction of a 36-megawatt solar farm in France and a 12.5-megawatt project in Italy.

Solar panel maker, First Solar, will benefit from EDF's agreement with EIB. EDF said it plans to use First Solar's products for all the projects to be partly financed by EIB's €500 million.

EDF and First Solar already have teamed up to build a solar panel factory in France. The two companies announced this plan in July this year, and said the initial, annual production capacity would be 100 megawatts.

EDF would provide a low-interest loan to cover half of the construction and startup costs. EDF, which said it plans to install 500 megawatts by 2012, would get to use all of the factory's output for the first 10 years.

Back in July, First Solar said the factory would be up and running by the second half of 2011. But company executives told financial analysts yesterday that the factory would likely be operational in 2012. The Tempe, Ariz.-based company plans to expand its manufacturing operation in Malaysia by adding 424 megawatts of annual capacity starting in 2010.