Solar Millennium, a German solar project developer, announced Wednesday its plan to sell the rights to develop a 50-megawatt solar thermal plant in Spain within the next two months. The announcement comes as the next step in the so-called Andasol series, a renewable energy project that already includes the Andasol-1 plant--the biggest solar thermal plant in Europe. Solar thermal plants operate in a manner similar to conventional coal or gas-fired power plants, except that they use mirrors to turn water into steam and drive a turbine instead of the dirty, carbon-producing fuels utilized by the latter. This move comes in the midst of the most severe global financial crisis in generations, at a time when credit markets are frozen and investments in new, renewable energy projects are significantly diminished. Solar Millennium intends to bypass the frozen credit market by offering a debt-free deal--the buyer will build and operate the plant and recoup its investment through a 25-year, state-guaranteed power price intended as part of a larger initiative to boost the wavering supply of much-needed forms of renewable energy. According to Solar Millennium, many long-term equity investors have stepped forward with considerable interest in the project. Because of high interest rates and the fees banks charge to fund projects, there is very little interest in conventional project finance at present. It appears that Solar Millennium's announcement of this project comes at a particularly good time.
This is very welcome news at a time when many doom-saying economic analysts are suggesting that the intensifying global finance crisis is impeding the progress of the burgeoning move toward renewable energy sources. The prudence and timeliness with which Solar Millennium made this announcement is just what we need at present. We need to approach the impending future of energy with this sort of self-assuredness and forward-thinking confidence; we need to present new and bold ideas that will lead us to a more sustainable way of life. Investor confidence needs to be restored, and if this story indicates anything, it is that investors are hesitant to embrace any new projects that remain within the paradigm of convention--now is the time to bring forth new ideas that break with convention and add momentum to the already growing "green" revolution. Here in America, we need something more concrete than an ideological shift--we need a bold, quantifiable change that will carry us forward with restored confidence and a more self-reflective understanding of our actions and their consequences. Hopefully the recent change in administration will prove to be just what we needed--a new force to stoke the embers of change and ignite a revolution in the spirit of renewed optimism and a deeper appreciation for fresh ideas.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE51H5JK20090218
No comments:
Post a Comment