The company behind plans to build the world's largest solar farm has revealed that it is to switch to solar photovoltaic (PV) systems in what could mark a significant shift in the balance of power between competing PV and solar thermal technologies.

Germany-based Solar Millennium AG said in a statement released last week that it has changed its plans for the proposed 1GW Blythe solar farm in California, and will install the first 500MW of the facility using PV panels.

The firm added that it will make a decision on the technology that will be used in the second phase of the project at a later date.

"Solar Millennium responds quickly and pragmatically to market conditions and, at the moment, the California market favors PV technology," said chief executive Christoph Wolff.

"We are taking decisive steps in the US to maximise site value for our company and our shareholders."

However, Wolff insisted that Solar Millennium will continue to proceed with solar thermal technologies in other parts of the world.

"Our long-term strategy remains unchanged. We see solid demand for concentrated solar power [CSP] in the world's growth markets such as Africa, the Middle East, India and China," he said.

"This is also true for southern Europe where we have just achieved financial close on our fourth CSP plant in Spain."

Solar Millennium said that it is in talks with prospective solar PV panel suppliers, but did not name any of the companies being considered.

The move is part of a growing trend of planned projects with close to 2GW of capacity switching from solar thermal to PV systems in response to the falling price of PV panels.

Solar Millennium said that the decision to switch to lower cost PV technologies meant that the company will now finance the Blythe power plant on the free capital market, and will be able to forego the loan guarantee offered by the US Department of Energy.