Spectacular growth despite credit crunch
Despite the credit crunch, 2007 was a record year for investments in renewable energies. This was the conclusion reached by New Energy Finance, one of the segment’s leading market research companies. The industry posted an increase of 60 percent in total investment volume, at $148.4 billion US dollars, compared to the previous year. New Energy Finance thus had to correct its own forecasts upwards – despite using “conservative” research methods, as CEO Michael Liebreich affirmed. This strong growth is spread across all essential areas: venture capital and private equity investment increased by some 31 percent; plant financing rose by 68 percent to $84.5 billion US dollars. As in previous years, growth was driven by the high price of oil, state assistance programmes and the steadily awareness gain of business opportunities amongst investors and companies.
Source: Renewable Energy Focus, March/April 2008, p. 17
Going thermal – is investor interest shifting in Spain?
In his article “The cost of del sol? ,” Marcus Bensasson forecasts a possible change in Spain’s investment focus. From September, the feed-in tariff is probably going to decrease. Bensasson believes that a decrease will make investors shift from PV to large-scale solar thermal power plants (also: concentrating solar power). Increased interest was already evident last year. According to current feed-in arrangements, 50 megawatt CSP plants are the most profitable, and at an investment of around 250 million Euros, represent an attractive volume for project financiers.
Source: Project Finance International, March 2008, p. 46 f.
Feed-in tariffs in the USA and India
California is the first US state to have voted in feed-in tariffs for regenerative power. In order to be able to reach its target of supplying one fifth of electricity needs from renewable sources by 2010, the state wants to provide targeted support for smaller production facilities. Only those plants at a max of 1.5 megawatts will receive assistance. The feed-in tariff is between 8 and 31 cents per kilowatt hour, depending on feed-in time. A new assistance programme in India is going in the opposite direction. Only large-scale photovoltaic and CSP plants get assistance. In the future, the Indian Renewable Energy Development Agency will subsidise every kilowatt hour fed into the national grid to the tune of 30 US cents (photovoltaics) and 25 US cents (CSP). Only plants with capacity of more than one megawatt are eligible for assistance. The Indian government is thus aiming to attract investment in large-scale solar plants to the tune of ten billion US dollars.
Source: “Neue Energie”, March 2008, p. 97; Sun & Wind Energy 02/2008, p. 10 f.
EPURON sells and finances the world’s fourth largest solar project
The financing for El Calaverón, one of the world’s largest photovoltaic power plants, was concluded a couple of days ago. EPURON sold the 21.1 megawatt project to investors, which was realized in Spain. Debt capital was provided by the French bank Dexia, HSH Nordbank, as well as Dresdner Kleinwort. The equity capital was placed with the British lead investor Impax Asset Management, among others. “Large scale photovoltaic power plants in Spain are a great long term infrastructure investment opportunity. Key decisive factors for us were the feed-in tariff, reliable solar systems and exceptional financing. EPURON’s El Calaverón brings all these benefits and we hope it is the start of a longer term partnership,” said Peter Rossbach, Director, Impax Asset Management.
Stretches over an area of 100 hectares: PV plant El Calaverón
El Calaverón is located in the sunny region of Castilla-La Mancha. The project stretches over an area of 100 hectares, which is equivalent to more than 100 football fields. Up to 96,000 polycrystalline solar modules, which are installed on double-axis tracking systems from Conergy, will produce roughly 40,000 MWh of clean electricity annually to approximately 12,500 households. In addition, the power plant will save 39,000 tonnes of environmentally harmful CO2gas.