Following months of debate and speculation, Italian government officials have officially signed into law a new incentive structure for the country's Conto Energia, which sets solar feed-in tariffs (FITs).
According to the country's minister of economic development, these revisions will allow for the continued medium-term and long-term growth of the PV market while encouraging its self-sufficiency and minimizing the economic burden of FITs on individuals and businesses.
Beginning next month, when Conto Energia IV goes into effect, current FIT levels will be gradually reduced over the remainder of the year. However, in 2013, incentive levels will increase between five euro cents and 10 euro cents per kWh, according to an analysis by Germany-based market research firmEuPD Research. At this point, all other forms of funding for PV - including tax breaks and investment subsidies - will no longer be available.
The decree distinguishes between small systems and large systems, with rooftop installations under 1 MW and ground-mounted installations under 200 kW defined as small systems. A funding cap of 580 million euros is in effect from June 2011 to the end of 2012 for large systems. Under current pricing conditions, this level of funding would allow for an installed capacity of 2.69 GW.
In addition, Conto Energia IV provides a 5% FIT bonus to system operators that pay at least 60% of their investment costs (excluding installation costs) to companies in the European Union. "Asian and American producers will be hardest hit by this," EuPD Research predicts.
The impact and uncertainty of Italy's revised FIT structure are likely to be felt both in Italy and in the entire global PV market, according to market analysts from Jefferies & Co.
"While we believe the regulation is favorable for the PV industry in the second half of 2012 and beyond, the additional month of delay was extremely disruptive to the industry and will negatively impact second-quarter results for the group," the analysts wrote in a research note. "The question will be how quickly the Italian market can pick up." Another question is whether immediate demand pickup in Italy will prompt German buyers to accelerate their orders, believing that PV module prices have essentially reached their bottom.
Overall, however, the new Conto Energia is "substantially more positive than the first drafts and analyst expectations," the analysts wrote. In particular, encouraging components include the lack of a cap for rooftop installations up to 1 MW and the lack of a cap for ground-mounted systems up to 200 kW under self-consumption.
"This is positive to the original draft, which capped all ground-based systems regardless of size, but is a negative versus our last interpretation," the analysts noted. "Although farmers use electricity for pumping water and could benefit from this self-consumption regulation, and that farmers are a large market in Germany, we recommend that investors consider all ground based systems as capped until this market can be further studied."
Other analysts interpreted the entire decree more negatively. "Italy is no longer a big growth market," Wells Fargo analyst Sam Dubinsky told TheStreet.com.
"There have been so many subsidy proposals in recent weeks/months, it's tough to tell whether this one is any better or worse versus prior expectations," he continued. "In addition, with the market screeching to a halt due to subsidy uncertainty, any renewed growth is somewhat of an incremental positive. However, it is clear to us that Italy's growth prospects are dampened and the market can no longer carry the industry."
Italy's economic development ministry maintains that the ultimate effect will be positive and, in fact, predicts that the new Conto Energia will enable PV-generated electricity to reach grid parity in 2017.
Showing posts with label Italy. Show all posts
Showing posts with label Italy. Show all posts
Sunday, May 8, 2011
Saturday, March 26, 2011
German Integrator Takes Top Spot In New Global PV System Installer Rankings
Germany-based Belectric developed more than 300 MW of PV systems in 2010, propelling it to the top of IMS Research's newly released list of 2010 PV system integrator rankings.
However, despite the top spot and a three-fold increase in PV systems developed, Belectric still only managed to capture a 2.4% share of the non-residential PV market, estimated at 13.2 GW by IMS Research.
The company (formerly known as Beck Energy) narrowly edged out Germany-based juwi, and ranked five places ahead of 2009 leader Q-Cells International, which saw little growth last year.
"Our ongoing quarterly survey of close to 500 system integrators and engineering, procurement and construction contractors revealed a fragmented market - with the top 30 suppliers holding only a 22.1% aggregate share, down two percentage points on the previous year," says Ash Sharma, PV research director at IMS Research.
The latest global rankings also reveal Germany's ongoing PV dominance, with 13 of the top 30 system integrators from that market, IMS Research adds. Even though newly added annual German PV capacity is expected to decline in the coming years, it is clear that these companies will remain prominent, according to the report.
"German system integrators have become increasingly active in foreign markets, whilst maintaining a domestic stranglehold," explains Sharma. "They accounted for 19 of the top 20 rankings in Germany last year.”
U.S.-based system integrators are gaining ground rapidly, as revealed by IMS Research in January, and two players, SunPower and SunEdison, were the biggest integrators in 2010 in Italy, the world’s second-largest market. Surprisingly, only three Italian companies appear in their top 10 domestic rankings, with many large U.S., German and Spanish suppliers quickly moving into this exploding market.
IMS Research expects the U.S. non-residential market to become flooded by EPCs, with massive growth predicted for this year and 2012. "We've already identified close to 150 active U.S.-based system integrators, plus many more European and Asian companies that are entering this promising market," says Sharma.
The full rankings are available here.
SOURCE: IMS Research
However, despite the top spot and a three-fold increase in PV systems developed, Belectric still only managed to capture a 2.4% share of the non-residential PV market, estimated at 13.2 GW by IMS Research.
The company (formerly known as Beck Energy) narrowly edged out Germany-based juwi, and ranked five places ahead of 2009 leader Q-Cells International, which saw little growth last year.
"Our ongoing quarterly survey of close to 500 system integrators and engineering, procurement and construction contractors revealed a fragmented market - with the top 30 suppliers holding only a 22.1% aggregate share, down two percentage points on the previous year," says Ash Sharma, PV research director at IMS Research.
The latest global rankings also reveal Germany's ongoing PV dominance, with 13 of the top 30 system integrators from that market, IMS Research adds. Even though newly added annual German PV capacity is expected to decline in the coming years, it is clear that these companies will remain prominent, according to the report.
"German system integrators have become increasingly active in foreign markets, whilst maintaining a domestic stranglehold," explains Sharma. "They accounted for 19 of the top 20 rankings in Germany last year.”
U.S.-based system integrators are gaining ground rapidly, as revealed by IMS Research in January, and two players, SunPower and SunEdison, were the biggest integrators in 2010 in Italy, the world’s second-largest market. Surprisingly, only three Italian companies appear in their top 10 domestic rankings, with many large U.S., German and Spanish suppliers quickly moving into this exploding market.
IMS Research expects the U.S. non-residential market to become flooded by EPCs, with massive growth predicted for this year and 2012. "We've already identified close to 150 active U.S.-based system integrators, plus many more European and Asian companies that are entering this promising market," says Sharma.
The full rankings are available here.
SOURCE: IMS Research
Saturday, March 19, 2011
Solaria Receives Financing for 8 MW PV Plant in Italy
Solaria Energia y Medio Ambiente SA says that Banca Infrastrutture Innovazione e Sviluppo, an Intesa San Paolo company, has agreed to provide 24 million euros in financing for the company's 8 MW Lazio solar project in Italy.
This ground-mounted solar plant is located in the vicinity of Orte (Viterbo, Venusia, Italy). It is owned by Solaria Aleph Generation FCR, which is 50% owned by Solaria Energia Y Medio Ambiente.
SOURCE: Solaria
Views: What makes this noteworthy is that many investors looking at putting money into Italian solar PV projects are sitting on the sideline waiting for the new FIT guidelines to be issued.
This ground-mounted solar plant is located in the vicinity of Orte (Viterbo, Venusia, Italy). It is owned by Solaria Aleph Generation FCR, which is 50% owned by Solaria Energia Y Medio Ambiente.
SOURCE: Solaria
Views: What makes this noteworthy is that many investors looking at putting money into Italian solar PV projects are sitting on the sideline waiting for the new FIT guidelines to be issued.
Monday, March 7, 2011
Italy Announces Feed-In Tariff Reductions, But No Solar Market Cap
Representatives from Italy's Ministry for the Environment and the Ministry for Economic Development have reached an agreement with Gruppo Imprese Fotovoltaiche Italiane (GIFI), the country's PV industry association, to adjust solar feed-in tariff (FIT) rates under its energy law.
FIT reductions will be put in place beginning in June, according to a report from EuPD Research. However, a comprehensive market cap, which had previously been demanded by the ministries, is now off the table.
"Making adjustments to funding is the right step," says Markus A.W. Hoehner, CEO of EuPD Research. "Prices in the small rooftop system segment in Italy are, on average, 4,300 euros and peak at 6,000 euros. These prices are much higher than those in other European countries such as Germany, Spain or France."
EuPD Research notes that in addition to the 3.7 GW of PV capacity already connected to the grid in Italy, 3.8 GW currently awaits interconnection, according to data from electricity provider GSE.
The scope of the FIT reductions has not yet been determined. Additional talks are expected to take place next month.
SOURCE: EuPD Research
FIT reductions will be put in place beginning in June, according to a report from EuPD Research. However, a comprehensive market cap, which had previously been demanded by the ministries, is now off the table.
"Making adjustments to funding is the right step," says Markus A.W. Hoehner, CEO of EuPD Research. "Prices in the small rooftop system segment in Italy are, on average, 4,300 euros and peak at 6,000 euros. These prices are much higher than those in other European countries such as Germany, Spain or France."
EuPD Research notes that in addition to the 3.7 GW of PV capacity already connected to the grid in Italy, 3.8 GW currently awaits interconnection, according to data from electricity provider GSE.
The scope of the FIT reductions has not yet been determined. Additional talks are expected to take place next month.
SOURCE: EuPD Research
Battle Brewing in Italy Over FIT Cuts
Future changes to solar feed-in-tariff (FIT) rates, as announced by Italy's government, are "markedly unconstitutional," according to a coalition of industry groups, including APER, Assosolare, Asso Energie Future and Gifi.
The groups have launched a joint appeal asking the country's president, Giorgio Napolitano, to not sign the decree, claiming that it "does not comply with the parliamentary mandate empowering the government to introduce legislation incorporating the terms of the European directive to foster the use of [renewable energy.]"
"Moreover, it is an arbitrary act taken by the government without the agreement of the regions, which expressed their views on a text substantially different from the one then approved by the cabinet," adds Pietro Pacchione, chief executive of APER. "Parliamentary prerogatives have also been violated, and in particular, the terms of the mandate conferred on the government."
"The decree as now approved will have very serious negative effects at once," notes Valerio Natalizia, chairman of Gifi. "Over 100,000 workers directly employed in the sector will be laid off immediately and placed on the special redundancy fund."
SOURCE: APER
The groups have launched a joint appeal asking the country's president, Giorgio Napolitano, to not sign the decree, claiming that it "does not comply with the parliamentary mandate empowering the government to introduce legislation incorporating the terms of the European directive to foster the use of [renewable energy.]"
"Moreover, it is an arbitrary act taken by the government without the agreement of the regions, which expressed their views on a text substantially different from the one then approved by the cabinet," adds Pietro Pacchione, chief executive of APER. "Parliamentary prerogatives have also been violated, and in particular, the terms of the mandate conferred on the government."
"The decree as now approved will have very serious negative effects at once," notes Valerio Natalizia, chairman of Gifi. "Over 100,000 workers directly employed in the sector will be laid off immediately and placed on the special redundancy fund."
SOURCE: APER
Thursday, March 3, 2011
No Change to FIT Expected in Italy
Concerns over possible revisions to the Italian PV feed-in tariff being aggressively adjusted downwards and even the imposition of a installation cap (following the recent reductions in Germany) are looking less likely, according to a research note from Barclays Captial analyst, Vishal Shah. Political posturing in recent days, indicates that Italian Government ministers are not supporting any FiT system that would include a cap.
It was suggested that an 8GW cap could be introduced after the massive increase in installations and requests for connection had been received by the GSE body. Trade groups had suggested a cap being introduced, targeted at 12GW.
However, according to Shah;
The Minister of Environment made a statement yesterday on the need for a gradual decrease of the incentive burden as opposed to a complete freeze of incentives. Even today, at Enel's carbon sequestration opening ceremony, the Environment Minister made a statement to the press that as far as she was concerned, there will be NO cap of 8GW, and that the language of the draft decree was still under discussion/negotiation.
A final draft of the expected FiT changes was said to be written tonight and will go to the council of ministers for a discussion tomorrow.
It was suggested that an 8GW cap could be introduced after the massive increase in installations and requests for connection had been received by the GSE body. Trade groups had suggested a cap being introduced, targeted at 12GW.
However, according to Shah;
The Minister of Environment made a statement yesterday on the need for a gradual decrease of the incentive burden as opposed to a complete freeze of incentives. Even today, at Enel's carbon sequestration opening ceremony, the Environment Minister made a statement to the press that as far as she was concerned, there will be NO cap of 8GW, and that the language of the draft decree was still under discussion/negotiation.
A final draft of the expected FiT changes was said to be written tonight and will go to the council of ministers for a discussion tomorrow.
P.S. The other day some Italcogim (French Energy Company) salespeople knocked on our door in Genova. Turns out Italy only produces about 15 to 20% of its own electrical energy - buying what it needs from France and Switzerland ... and the gas it needs from Russia, Algeria, Libya, etc. They were offering us the opportunity to buy direct from them -- at a nice discount. The point is that Italy needs to produce it's own energy - therefore they are promoting solar energy with the FIT.
Tuesday, February 1, 2011
FITs Drive Nearly 2,000 MW of Solar PV Development in Italy
Italy officially reported this week that 1,850 MW of new solar photovoltaics (PV) systems were installed in 2010, substantially exceeding industry estimates.
Gesore dei Servizi Energetici (GSE) added that data is still coming in for 2010 and that the total installed capacity through 2010 may reach 3,000 MW from 150,000 systems.
Italy installed 711 MW of solar PV in 2009, 340 MW in 2008, and only 60 MW in 2007.
GSE says that there are an additional 4,000 MW of solar PV from 55,000 systems in the pipeline that potentially will bring total installed capacity to 7,000 MW.
Italy's 2020 target for solar PV is 8,000 MW.
Though there are no official statistics available on solar installations in the USA, industry sources estimate that as much as 800 MW and possibly up to 900 MW of solar PV were installed in 2010.
If true, it appears that Italy with 60 million inhabitants installed three times more solar PV in 2010 than the entire USA with its 330 million people.
Within three years Italy installed 1,000 MW more solar PV capacity than was installed in the USA during the past thirty years.
Italy's rapid development of solar PV has been driven by its system of feed-in tariffs,Conto Energia, that pays for every kilowatt-hour generated by solar panels whether owned by homeowners, small businesses, or the Vatican.
Under Italian conditions, 3,000 MW of solar PV is capable of generating from 3 TWh per year to 4 TWh per year, equivalent to ~1% of the country's electricity consumption.
Gesore dei Servizi Energetici (GSE) added that data is still coming in for 2010 and that the total installed capacity through 2010 may reach 3,000 MW from 150,000 systems.
Italy installed 711 MW of solar PV in 2009, 340 MW in 2008, and only 60 MW in 2007.
GSE says that there are an additional 4,000 MW of solar PV from 55,000 systems in the pipeline that potentially will bring total installed capacity to 7,000 MW.
Italy's 2020 target for solar PV is 8,000 MW.
Though there are no official statistics available on solar installations in the USA, industry sources estimate that as much as 800 MW and possibly up to 900 MW of solar PV were installed in 2010.
If true, it appears that Italy with 60 million inhabitants installed three times more solar PV in 2010 than the entire USA with its 330 million people.
Within three years Italy installed 1,000 MW more solar PV capacity than was installed in the USA during the past thirty years.
Italy's rapid development of solar PV has been driven by its system of feed-in tariffs,Conto Energia, that pays for every kilowatt-hour generated by solar panels whether owned by homeowners, small businesses, or the Vatican.
Under Italian conditions, 3,000 MW of solar PV is capable of generating from 3 TWh per year to 4 TWh per year, equivalent to ~1% of the country's electricity consumption.
Source: Renewable Energy World.com
Sunday, January 23, 2011
Italy is the Hot Market for Solar Projects
Italy's solar market went into overdrive in the fourth quarter of 2010, setting the stage for a doubling in photovoltaic installations this year as global investment flows into the country, according to a report from market research firm iSuppli (now part of IHS Inc.).
Based on interviews with project developers and energy performance contractors in Italy, iSuppli predicts the country will have installed 975 MW worth of PV solar systems in the fourth quarter, doubling the 487 MW in the third quarter, and rising 239% from 288 MW during the fourth quarter of 2009.
This fourth-quarter surge is predicted to have caused installations in 2010 to rise to 1.9 GW, up 100% from 720 GW in 2009. The rise in installations will set the stage for another doubling of the market this year, with installations rising to 3.9 GW, the company says.
"The strong fourth-quarter growth represents a breakthrough for Italian PV installations, which until now had been limited to 300 MW or less, with the expansion propelled by installers rushing to take advantage of an Italian government subsidy scheduled to expire soon," says Dr. Henning Wicht, senior director and principal analyst for PV systems at iSuppli.
Installations finished by the end of 2010 and connected to the grid by June 30, 2011, will still be able to benefit from the 2010 feed-in tariff (FIT) of Italy’s Second Conto d’energia. Under the current FIT, and with installed system prices of 2,500 to 2,800 euros per kW, a highly attractive internal rate of return (IRR) of 15% to 18% is possible in Italy.
Italy's IRR is alluring to solar investors given the depressing news about caps or severe reductions of solar FITs in France, the Czech Republic and Spain, iSuppli notes. Consequently, investors are flocking to Italy, leaving behind the closing Czech market and even the safe harbor of Germany.
Nonetheless, some signs of potential trouble may lie ahead, the company adds. For one, a potential risk to the positive market outlook because the Italian government might reduce the FIT more quickly than scheduled. However, it is unlikely that authorities will be able to change the FIT before the third quarter of 2011. Furthermore, official data from the state-run power management agency could be delayed by as much as six months, resulting in the deferral of any formal assessment that would lead to FIT adjustments.
For more information, click here.
SOURCE: iSuppli
Based on interviews with project developers and energy performance contractors in Italy, iSuppli predicts the country will have installed 975 MW worth of PV solar systems in the fourth quarter, doubling the 487 MW in the third quarter, and rising 239% from 288 MW during the fourth quarter of 2009.
This fourth-quarter surge is predicted to have caused installations in 2010 to rise to 1.9 GW, up 100% from 720 GW in 2009. The rise in installations will set the stage for another doubling of the market this year, with installations rising to 3.9 GW, the company says.
"The strong fourth-quarter growth represents a breakthrough for Italian PV installations, which until now had been limited to 300 MW or less, with the expansion propelled by installers rushing to take advantage of an Italian government subsidy scheduled to expire soon," says Dr. Henning Wicht, senior director and principal analyst for PV systems at iSuppli.
Installations finished by the end of 2010 and connected to the grid by June 30, 2011, will still be able to benefit from the 2010 feed-in tariff (FIT) of Italy’s Second Conto d’energia. Under the current FIT, and with installed system prices of 2,500 to 2,800 euros per kW, a highly attractive internal rate of return (IRR) of 15% to 18% is possible in Italy.
Italy's IRR is alluring to solar investors given the depressing news about caps or severe reductions of solar FITs in France, the Czech Republic and Spain, iSuppli notes. Consequently, investors are flocking to Italy, leaving behind the closing Czech market and even the safe harbor of Germany.
Nonetheless, some signs of potential trouble may lie ahead, the company adds. For one, a potential risk to the positive market outlook because the Italian government might reduce the FIT more quickly than scheduled. However, it is unlikely that authorities will be able to change the FIT before the third quarter of 2011. Furthermore, official data from the state-run power management agency could be delayed by as much as six months, resulting in the deferral of any formal assessment that would lead to FIT adjustments.
For more information, click here.
SOURCE: iSuppli
Monday, January 10, 2011
iSuppli forecasts huge growth for PV installations in Italy: 1GW per quarter in 2011
An enormous amount of growth in PV installations for Italy is being predicted by market research firm iSuppli Corp. According to the analysts’ senior director and principal analyst for PV systems, Dr. Henning Wicht, detailed checks show that 975MW will be installed in the country in the fourth quarter. This will result in total installations for 2010 reaching nearly 2GW. Further impressive growth is expected in 2011, when installations reach nearly 4GW.
“The strong fourth-quarter growth represents a breakthrough for Italian PV installations, which until now had been limited to 300MW or less, with the expansion propelled by installers rushing to take advantage of an Italian government subsidy scheduled to expire soon,” noted Wicht.
Wicht told PV-Tech that projects built before the end of the year need not be connected to grid at that time to receive tariff payments but have till mid-year 2011 to be connected to benefit from the soon to expire tariff rates.
Under the current Italian FiT, a highly attractive internal rate of return (IRR) of 15 to 18% is possible.
Under the current Italian FiT, a highly attractive internal rate of return (IRR) of 15 to 18% is possible.
Based on interviews with leading project developers and energy performance contractors in Italy, iSuppli predicts the country will install 975MW in the fourth quarter, doubling the 487MW in the third quarter, and rising 239% from 288MW during the fourth quarter of 2009.
According to Dr. Wicht the fourth-quarter surge will cause installations in 2010 to rise to 1.9GW, up 100% from the previous record of 720GW in 2009.
The market analyst said that the Italian market is now capable of significant monthly installation rates as more installers and project developers have and continue to move into that market.
Growth in installations will set the stage for another doubling of the market in 2011, with installations rising to 3.9GW.
“It is true, Italian solar installations will drop at the start of the first quarter of 2011, following the burst of the growth at the end of 2010. But the decline is set to last only weeks, rather than months, with the rate of new installations to rise rapidly again following this period” added Wicht. “And despite the expected FiT declines, the IRR of solar investments in Italy still will be higher than anywhere else. As a result, installations in Italy will rise to approximately 1GW per quarter in 2011.
However, Wicht also raised some cautionary points regarding the Italian market. He sees the potential risk in the Italian government reducing the FiT more quickly than scheduled. This is unlikely to happen quickly however, due to the unstable political situation of the Silvio Berlusconi government.
Apparently, official data from GSE could be delayed by as much as six months, resulting in the deferral of any formal assessment that would lead to FiT adjustments.
Another concern is that regional governments may try to limit the amount of land used for ground mounted PV systems, even though limits potentially aimed for must pass Italian federal law.
Finally, Wicht noted that grid connection in Southern Italy could prove more challenging than elsewhere, posing additional installation headaches - though he doesn’t see these as show stopping problems.
The impressive growth expected in Italy this year and next correlates to iSuppli’s overall strong growth for the PV industry in 2010 and 2011. Recently, iSuppli projected installations worldwide would reach approximately 15.8GW in 2010 and grow to 19.3GW in 2011.
Worldwide installations in 2010 will amount to 15.8GW, up from iSuppli’s previous outlook of 14.2GW. This will represent 118.7% growth from 7.2GW in 2009. iSuppli now forecasts that installations in 2011 will amount to 19.3GW, down slightly from its previous forecast of 20.2GW.
Source: PV Tech
Wednesday, January 5, 2011
SunPower Sells 13 MW Solar Project in Italy
SunPower Corp. has completed the sale of its 13 MW Solare Roma solar power plant to Allianz Renewable Energy Partners IV Ltd., a wholly owned subsidiary of Allianz SE.
SunPower designed and built the solar power plant, which is located in the municipality of Anguillara in Italy, and will provide ongoing operations and maintenance services for the new owner.
SOURCE: SunPower Corp.
SunPower designed and built the solar power plant, which is located in the municipality of Anguillara in Italy, and will provide ongoing operations and maintenance services for the new owner.
SOURCE: SunPower Corp.
Italy's PV Market Doubled in 2010
Italy's solar market went into overdrive in the fourth quarter of 2010, setting the stage for a doubling in photovoltaic installations this year as global investment flows into the country, according to a report from market research firm iSuppli (now part of IHS Inc.).
Based on interviews with project developers and energy performance contractors in Italy, iSuppli predicts the country will have installed 975 MW worth of PV solar systems in the fourth quarter, doubling the 487 MW in the third quarter, and rising 239% from 288 MW during the fourth quarter of 2009.
This fourth-quarter surge is predicted to have caused installations in 2010 to rise to 1.9 GW, up 100% from 720 GW in 2009. The rise in installations will set the stage for another doubling of the market this year, with installations rising to 3.9 GW, the company says.
"The strong fourth-quarter growth represents a breakthrough for Italian PV installations, which until now had been limited to 300 MW or less, with the expansion propelled by installers rushing to take advantage of an Italian government subsidy scheduled to expire soon," says Dr. Henning Wicht, senior director and principal analyst for PV systems at iSuppli.
Installations finished by the end of 2010 and connected to the grid by June 30, 2011, will still be able to benefit from the 2010 feed-in tariff (FIT) of Italy’s Second Conto d’energia. Under the current FIT, and with installed system prices of 2,500 to 2,800 euros per kW, a highly attractive internal rate of return (IRR) of 15% to 18% is possible in Italy.
Italy's IRR is alluring to solar investors given the depressing news about caps or severe reductions of solar FITs in France, the Czech Republic and Spain, iSuppli notes. Consequently, investors are flocking to Italy, leaving behind the closing Czech market and even the safe harbor of Germany.
Nonetheless, some signs of potential trouble may lie ahead, the company adds. For one, a potential risk to the positive market outlook because the Italian government might reduce the FIT more quickly than scheduled. However, it is unlikely that authorities will be able to change the FIT before the third quarter of 2011. Furthermore, official data from the state-run power management agency could be delayed by as much as six months, resulting in the deferral of any formal assessment that would lead to FIT adjustments.
For more information, click here.
SOURCE: iSuppli
Based on interviews with project developers and energy performance contractors in Italy, iSuppli predicts the country will have installed 975 MW worth of PV solar systems in the fourth quarter, doubling the 487 MW in the third quarter, and rising 239% from 288 MW during the fourth quarter of 2009.
This fourth-quarter surge is predicted to have caused installations in 2010 to rise to 1.9 GW, up 100% from 720 GW in 2009. The rise in installations will set the stage for another doubling of the market this year, with installations rising to 3.9 GW, the company says.
"The strong fourth-quarter growth represents a breakthrough for Italian PV installations, which until now had been limited to 300 MW or less, with the expansion propelled by installers rushing to take advantage of an Italian government subsidy scheduled to expire soon," says Dr. Henning Wicht, senior director and principal analyst for PV systems at iSuppli.
Installations finished by the end of 2010 and connected to the grid by June 30, 2011, will still be able to benefit from the 2010 feed-in tariff (FIT) of Italy’s Second Conto d’energia. Under the current FIT, and with installed system prices of 2,500 to 2,800 euros per kW, a highly attractive internal rate of return (IRR) of 15% to 18% is possible in Italy.
Italy's IRR is alluring to solar investors given the depressing news about caps or severe reductions of solar FITs in France, the Czech Republic and Spain, iSuppli notes. Consequently, investors are flocking to Italy, leaving behind the closing Czech market and even the safe harbor of Germany.
Nonetheless, some signs of potential trouble may lie ahead, the company adds. For one, a potential risk to the positive market outlook because the Italian government might reduce the FIT more quickly than scheduled. However, it is unlikely that authorities will be able to change the FIT before the third quarter of 2011. Furthermore, official data from the state-run power management agency could be delayed by as much as six months, resulting in the deferral of any formal assessment that would lead to FIT adjustments.
For more information, click here.
SOURCE: iSuppli
Tuesday, November 30, 2010
Largest Single Operating PV Solar Farm in Europe - Online in Italy
SunEdison, a global solar energy provider, just announced it has successfully interconnected a 70MW photovoltaic power plant near Rovigo, a town in the northeast of Italy - making this the largest single operating Solar Farm in Europe.
“With construction completion in less than one year, we believe this deployment signifies a new milestone for the industry and will become the standard for future mega projects,” said Carlos Domenech, SunEdison’s president.
The Rovigo solar plant is expected to generate energy to power more than 16,500 homes and prevent the emission of more than 40,000 tons of CO2. That would equal removing 8,000 cars from the road.
I'ts an interesting fact that such a great plant will be realized in north of Italy, in a foggy region...... instead of South Italy?
Monday, October 25, 2010
Europe’s Largest Solar Power Plant (72 MW) To Be Built in Rovigo, Italy
SunEdison, a division of MEMC Electronic Materials, Inc. (NYSE: WFR), received final approval from the Italian government to develop and construct a 72 Megawatt (MW) photovoltaic solar power plant in Northeastern Italy, near the town of Rovigo. When completed, this is expected to be the largest photovoltaic (PV) solar power plant in Europe.
Power generation will begin in the second half of 2010 with final completion expected by year end. In the first full year of operation, the system will generate sufficient energy to power 17,150 homes and avoid 41,000 tons of CO2 –the equivalent of removing 8,000 cars from the road.
SunEdison will jointly develop the project with financing partner Banco Santander. Additional financial partners are expected to join the project for final ownership.
“SunEdison is focused on enabling the growth of global solar markets through strong capabilities in project finance, engineering, low-cost procurement and operations and maintenance services,” commented Carlos Domenech, President of SunEdison.
“Veneto (Venice) is taking decisive action to advance the use of clean, renewable energy sources,” said Renzo Marangon, government official of the Veneto region. “At the same time, this project is expected to create over 350 local construction jobs and build expertise in advanced energy technologies. We expect Rovigo to serve as a European model for large-scale, alternative-energy projects.”
“A critical element of our approach is working closely with the right partners,” added Pancho Perez, General Manager for Europe and MENA region at SunEdison, “including developers, suppliers and contractors. For the Rovigo project, we selected Isolux Corsan, a large-scale infrastructure construction company with a strong track record in utility-scale solar plants.”
“We are pleased to be selected by SunEdison to construct the largest PV solar plant in Europe. We are looking forward to extending this partnership beyond Italy,” said Luis Delso, President of Isolux Corsan.
At 72 megawatts, this solar-power plant will be the largest in Europe.
Currently, the largest facility is a 60MW solar farm in Olmedilla, Spain, followed by a 50 MW in Strasskirchen, Germany , built by MEMC through a joint venture agreement.
Power generation will begin in the second half of 2010 with final completion expected by year end. In the first full year of operation, the system will generate sufficient energy to power 17,150 homes and avoid 41,000 tons of CO2 –the equivalent of removing 8,000 cars from the road.
SunEdison will jointly develop the project with financing partner Banco Santander. Additional financial partners are expected to join the project for final ownership.
“SunEdison is focused on enabling the growth of global solar markets through strong capabilities in project finance, engineering, low-cost procurement and operations and maintenance services,” commented Carlos Domenech, President of SunEdison.
“Veneto (Venice) is taking decisive action to advance the use of clean, renewable energy sources,” said Renzo Marangon, government official of the Veneto region. “At the same time, this project is expected to create over 350 local construction jobs and build expertise in advanced energy technologies. We expect Rovigo to serve as a European model for large-scale, alternative-energy projects.”
“A critical element of our approach is working closely with the right partners,” added Pancho Perez, General Manager for Europe and MENA region at SunEdison, “including developers, suppliers and contractors. For the Rovigo project, we selected Isolux Corsan, a large-scale infrastructure construction company with a strong track record in utility-scale solar plants.”
“We are pleased to be selected by SunEdison to construct the largest PV solar plant in Europe. We are looking forward to extending this partnership beyond Italy,” said Luis Delso, President of Isolux Corsan.
At 72 megawatts, this solar-power plant will be the largest in Europe.
Currently, the largest facility is a 60MW solar farm in Olmedilla, Spain, followed by a 50 MW in Strasskirchen, Germany , built by MEMC through a joint venture agreement.
Wednesday, September 8, 2010
Italy Reduces Solar Incentives
The Italian Conferenza Stato e Regioni - the country's committee of representatives and the central government - plans to adjust national feed-in-tariff (FIT) levels. The new levels will take effect Dec. 31.
The FIT - known as the Conto Energia III - "still offers a high degree of investment security, despite the moderate reductions made in line with current market conditions," says EuPD Research in a research note announcing the reduction.
Funds allocated to solar electricity generated by open-space systems with a capacity up to 5 MW will be cut by 9.3% - on average - during the first four months of 2011, according to EuPD Research. Incentives for systems with a capacity of 5 MW and greater will be decreased by 14.2%. Adjustments for rooftop systems are between 4.75% and 13.28%, depending on the size of the system. Tariffs will be reduced every four months in 2011.
"The new Conto Energia III clearly shows that an adjustment with a sense of proportion can also work in growth markets such as the Italian market," commented Markus A.W. Hoehner, CEO of EuPD Research. "The fact that a sweeping cut of all tariffs is no longer under discussion and that the adjustments have been tailored to the individual market segments should be [welcomed]."
SOURCE: EuPD Research
The FIT - known as the Conto Energia III - "still offers a high degree of investment security, despite the moderate reductions made in line with current market conditions," says EuPD Research in a research note announcing the reduction.
Funds allocated to solar electricity generated by open-space systems with a capacity up to 5 MW will be cut by 9.3% - on average - during the first four months of 2011, according to EuPD Research. Incentives for systems with a capacity of 5 MW and greater will be decreased by 14.2%. Adjustments for rooftop systems are between 4.75% and 13.28%, depending on the size of the system. Tariffs will be reduced every four months in 2011.
"The new Conto Energia III clearly shows that an adjustment with a sense of proportion can also work in growth markets such as the Italian market," commented Markus A.W. Hoehner, CEO of EuPD Research. "The fact that a sweeping cut of all tariffs is no longer under discussion and that the adjustments have been tailored to the individual market segments should be [welcomed]."
SOURCE: EuPD Research
Sunday, August 8, 2010
Funding Approved For Italy's Largest PV Manufacturing Plant (Thin Film)
Today, Enel Green Power, Sharp and STMicroelectronics have signed a binding letter of commitment for a project financing agreement for 150 million euros for the development of what will be Italy's biggest photovoltaic panel factory.
The 3Sun equal share joint venture thus enters its operational phase, in line with the agreement signed by the three partners on January 4th, 2010, with its statutory bodies having been appointed today. The goal of the joint venture is to start operations at the Catania factory for the integrated production of innovative photovoltaic cells and panels.
The Sicilian factory's initial photovoltaic panel production capacity, equivalent to 160 MW per year, is to be financed through a combination of self-financing, funding from the CIPE (the Italian Joint Ministerial Committee for Economic planning) - which recently set aside 49 million euros for this project - and project financing provided by leading banks.
Each partner has underwritten one third of the equity - with a commitment of 70 million euros in cash or in tangible and intangible assets, as previously announced – and holds one third of the shares in the new joint venture.
Each partner brings specialized knowledge and skills to 3Sun. Enel Green Power is expert in developing renewable energy on an international scale and in project management. Sharp contributes its exclusive triple-junction thin-film technology, in production since the spring of this year at the Sakai factory in Japan. STMicroelectronics has manufacturing know-how with highly trained specialists in state-of-the-art technology sectors such as microelectronics.
The factory, whose yearly output is expected to reach 480 MW over the coming years, will be Italy's largest photovoltaic panel manufacturer from the first day of operation. Panel production at the Catania plant is scheduled to begin in the second half of 2011.
Enel Green Power and Sharp have also created a separate joint venture, Enel Green Power & Sharp Solar Energy – ESSE, for the construction and joint management of solar farms for the generation and sale of electricity in the Mediterranean region, using the panels produced by the Catania plant.
The total installed capacity is projected to be over 500 MW by 2016.
Factory output will also serve the most promising solar markets in Europe, the Middle East and Africa, with a particular focus on the Mediterranean area, the region in which Enel Green Power and Sharp already have extensive sales networks. Enel.si, a subsidiary of Enel Green Power specialised in the installation of photovoltaic systems for the retail market, will also take part in the marketing, selling panels through its own franchise network of over 500 approved installers, located throughout Italy.
The 3Sun equal share joint venture thus enters its operational phase, in line with the agreement signed by the three partners on January 4th, 2010, with its statutory bodies having been appointed today. The goal of the joint venture is to start operations at the Catania factory for the integrated production of innovative photovoltaic cells and panels.
The Sicilian factory's initial photovoltaic panel production capacity, equivalent to 160 MW per year, is to be financed through a combination of self-financing, funding from the CIPE (the Italian Joint Ministerial Committee for Economic planning) - which recently set aside 49 million euros for this project - and project financing provided by leading banks.
Each partner has underwritten one third of the equity - with a commitment of 70 million euros in cash or in tangible and intangible assets, as previously announced – and holds one third of the shares in the new joint venture.
Each partner brings specialized knowledge and skills to 3Sun. Enel Green Power is expert in developing renewable energy on an international scale and in project management. Sharp contributes its exclusive triple-junction thin-film technology, in production since the spring of this year at the Sakai factory in Japan. STMicroelectronics has manufacturing know-how with highly trained specialists in state-of-the-art technology sectors such as microelectronics.
The factory, whose yearly output is expected to reach 480 MW over the coming years, will be Italy's largest photovoltaic panel manufacturer from the first day of operation. Panel production at the Catania plant is scheduled to begin in the second half of 2011.
Enel Green Power and Sharp have also created a separate joint venture, Enel Green Power & Sharp Solar Energy – ESSE, for the construction and joint management of solar farms for the generation and sale of electricity in the Mediterranean region, using the panels produced by the Catania plant.
The total installed capacity is projected to be over 500 MW by 2016.
Factory output will also serve the most promising solar markets in Europe, the Middle East and Africa, with a particular focus on the Mediterranean area, the region in which Enel Green Power and Sharp already have extensive sales networks. Enel.si, a subsidiary of Enel Green Power specialised in the installation of photovoltaic systems for the retail market, will also take part in the marketing, selling panels through its own franchise network of over 500 approved installers, located throughout Italy.
Saturday, July 24, 2010
Italy Solar Market to Shine Despite FIT Cuts
Reuters) – Italy, Europe’s No. 3 solar market, will not lose its appeal to investors despite a cut in production incentives and is likely to add about 1,000 megawatt of capacity a year in 2010-2013, the industry body head said.
Italy will slash feed-in tariffs for solar power market in 2011-2013 to bring the incentives in line with falling costs of photovoltaic (PV) systems which turn sunlight into power, starting with major cuts next year.
This year, Italy is set to add 800 MW to 1,000 MW of new PV capacity helped by the existing incentive scheme, among the most generous in Europe, Gert Gremes, chairman of Italy’s PV association GIFI, told Reuters in a telephone interview.
Feed-in tariffs, which guarantee operators steady returns for every kilowatt hour of produced power for 20 years in Italy, will be slashed by up to about 30 percent in 2011 and by 6 percent a year in 2012 and 2013. A 3,000 MW limit will be placed on capacity to be covered by incentives over 3 years.
“I think in 2011 we can repeat a year like 2010, or even have a slight growth … A gigawatt (1,000 MW) a year is very realistic in 2012 and 2013,” Gremes said. “You’ll see that a 3 gigawatt (cap) will be filled easily in three years,” he said.
Investors and solar panels manufacturers have been concerned that the cut in incentives would slow down growth of the Italian PV market which has boomed since 2007 when the old incentive scheme was launched.
“I believe that with the new tariffs Italy will remain a country where an investment in a photovoltaic plant is among, if not the most interesting (in Europe). I think investors will go ahead with building plants,” Gremes said.
Under the new incentive scheme, the internal rate of return (IRR) keenly watched by investors, would remain attractive, Gremes said but declined to give estimates.
Italy has not given an official forecast of PV capacity growth under the new incentive scheme which sets a 8,000 MW goal for 2020. Italy’s total installed PV capacity stood at 1,137 MW, according to data from the state energy management agency GSE.
Gremes confirmed GIFI’s long-term goal of reaching 15,000 MW capacity in 2020 but said reaching such objective would depend on further government support plans.
Article by Svetlana Kovalyova, edited by James Jukwey, appearing courtesy Reuters.
Italy will slash feed-in tariffs for solar power market in 2011-2013 to bring the incentives in line with falling costs of photovoltaic (PV) systems which turn sunlight into power, starting with major cuts next year.
This year, Italy is set to add 800 MW to 1,000 MW of new PV capacity helped by the existing incentive scheme, among the most generous in Europe, Gert Gremes, chairman of Italy’s PV association GIFI, told Reuters in a telephone interview.
Feed-in tariffs, which guarantee operators steady returns for every kilowatt hour of produced power for 20 years in Italy, will be slashed by up to about 30 percent in 2011 and by 6 percent a year in 2012 and 2013. A 3,000 MW limit will be placed on capacity to be covered by incentives over 3 years.
“I think in 2011 we can repeat a year like 2010, or even have a slight growth … A gigawatt (1,000 MW) a year is very realistic in 2012 and 2013,” Gremes said. “You’ll see that a 3 gigawatt (cap) will be filled easily in three years,” he said.
Investors and solar panels manufacturers have been concerned that the cut in incentives would slow down growth of the Italian PV market which has boomed since 2007 when the old incentive scheme was launched.
“I believe that with the new tariffs Italy will remain a country where an investment in a photovoltaic plant is among, if not the most interesting (in Europe). I think investors will go ahead with building plants,” Gremes said.
Under the new incentive scheme, the internal rate of return (IRR) keenly watched by investors, would remain attractive, Gremes said but declined to give estimates.
Italy has not given an official forecast of PV capacity growth under the new incentive scheme which sets a 8,000 MW goal for 2020. Italy’s total installed PV capacity stood at 1,137 MW, according to data from the state energy management agency GSE.
Gremes confirmed GIFI’s long-term goal of reaching 15,000 MW capacity in 2020 but said reaching such objective would depend on further government support plans.
Article by Svetlana Kovalyova, edited by James Jukwey, appearing courtesy Reuters.
Monday, July 5, 2010
Italy Surpasses US in Solar PV
by: Paul Gipe (Renewable Energy World)
In a dramatic display of the power feed-in tariffs have in driving markets, Italy installed more solar photovoltaics (PV) in 2009 than the entire U.S. Moreover, within the first quarter of 2010, Italy's total installed solar PV capacity was expected to exceed that of the US.
The proposed revision to the feed-in tariff program (conto energia), currently waiting approval, reduces the tariffs and sets a new target of 3,000 MW for the three-year period from 2011 to 2013.
Italy installed 720 megawatts (MW) of solar PV in 2009, nearly all of that on rooftops. In contrast, the U.S. installed 435 MW during the same period, according to a draft report by the Interstate Renewable Energy Council (IREC).
Italy introduced a system of feed-in tariffs for solar PV in February, 2007 after concluding that the previous program of Tradable Green Certificates was not delivering the results desired.
By the end of 2007, Italy had installed five times more solar PV than in the previous year. Despite numerous bureaucratic roadblocks, the solar industry took off in 2008 and installed nearly 350 MW, then a record-breaking number. Solar PV installations have been doubling since then and are expected to reach 1,500 MW in 2010.
Italy is three-fourths the size of California, with which it is often compared because of their similarly-sized economies. Italy has a population of 60 million, to California's 40 million. The population of the U.S. is five times that of Italy.
Italy is now the world's second largest annual market for solar PV, after Germany.
IREC estimates that there was 1,250 MW of total installed solar PV capacity in the U.S. at the end of 2009. Currently, the U.S. is installing 40-50 MW per month, and Italy 125 MW per month. At this pace, Italy surpassed the U.S. in total installed PV capacity before the end of the first quarter, likely by the end of February 2010.
Italy is installing more capacity--250 MW--every two months than California is installing per year.
By the end of 2010, Italy will have a total installed capacity of more than 2,500 MW. This is two and one-half times more capacity than is expected in California, and one and one-half times more than is expected in the U.S.
Italy's 2007 decree also set a solar PV target of 1,200 MW. They reached their target earlier this year.
Unlike Spain, the government has no plans to cut the program dramatically. The proposed revision to the feed-in tariff program (conto energia), currently waiting approval, reduces the tariffs and sets a new target of 3,000 MW for the three-year period from 2011 to 2013. The revisions are expected to be approved sometime this summer. The proposal cuts the tariffs 18% in three equal steps of 6% during each of the first three quarters in 2011.
According to Gruppo Imprese Fotovoltaiche Italiane (GIFI), 93% of all solar PV in Italy is installed on rooftops in distributed applications. Data from Gestore dei Servizi Energetici indicates that about one-fourth of all Italian solar PV installations are less than 20 kilowatts (kW) in size, or about 300 MW.
Read the full article here.
In a dramatic display of the power feed-in tariffs have in driving markets, Italy installed more solar photovoltaics (PV) in 2009 than the entire U.S. Moreover, within the first quarter of 2010, Italy's total installed solar PV capacity was expected to exceed that of the US.
The proposed revision to the feed-in tariff program (conto energia), currently waiting approval, reduces the tariffs and sets a new target of 3,000 MW for the three-year period from 2011 to 2013.
Italy installed 720 megawatts (MW) of solar PV in 2009, nearly all of that on rooftops. In contrast, the U.S. installed 435 MW during the same period, according to a draft report by the Interstate Renewable Energy Council (IREC).
Italy introduced a system of feed-in tariffs for solar PV in February, 2007 after concluding that the previous program of Tradable Green Certificates was not delivering the results desired.
By the end of 2007, Italy had installed five times more solar PV than in the previous year. Despite numerous bureaucratic roadblocks, the solar industry took off in 2008 and installed nearly 350 MW, then a record-breaking number. Solar PV installations have been doubling since then and are expected to reach 1,500 MW in 2010.
Italy is three-fourths the size of California, with which it is often compared because of their similarly-sized economies. Italy has a population of 60 million, to California's 40 million. The population of the U.S. is five times that of Italy.
Italy is now the world's second largest annual market for solar PV, after Germany.
IREC estimates that there was 1,250 MW of total installed solar PV capacity in the U.S. at the end of 2009. Currently, the U.S. is installing 40-50 MW per month, and Italy 125 MW per month. At this pace, Italy surpassed the U.S. in total installed PV capacity before the end of the first quarter, likely by the end of February 2010.
Italy is installing more capacity--250 MW--every two months than California is installing per year.
By the end of 2010, Italy will have a total installed capacity of more than 2,500 MW. This is two and one-half times more capacity than is expected in California, and one and one-half times more than is expected in the U.S.
Italy's 2007 decree also set a solar PV target of 1,200 MW. They reached their target earlier this year.
Unlike Spain, the government has no plans to cut the program dramatically. The proposed revision to the feed-in tariff program (conto energia), currently waiting approval, reduces the tariffs and sets a new target of 3,000 MW for the three-year period from 2011 to 2013. The revisions are expected to be approved sometime this summer. The proposal cuts the tariffs 18% in three equal steps of 6% during each of the first three quarters in 2011.
According to Gruppo Imprese Fotovoltaiche Italiane (GIFI), 93% of all solar PV in Italy is installed on rooftops in distributed applications. Data from Gestore dei Servizi Energetici indicates that about one-fourth of all Italian solar PV installations are less than 20 kilowatts (kW) in size, or about 300 MW.
Read the full article here.
Friday, July 2, 2010
Italy Solar Tariff Cuts Not as Bad as Feared
The latest important European solar market to debut a plan for solar feed-in tariff cuts is Italy, and Italy's plan is different in important respects from other notable feed-in tariff decline policies.
Italy is proposing a cumulative feed-in tariff decline of 18% in 2011, but the FIT decline will be spread out across four-month periods, with 6% FIT declines in each one. Italy has been expected to implement a feed-in tariff decline at the beginning of 2011, and so, the fact that it's now moving ahead is no surprise to solar. The reduction in solar module pricing has dictated a cut in Italy's FIT scheme. There is little doubt that all the solar companies are racing to make Italy a huge market once Germany's FITs decline. Italy is already the second largest market in Europe.
Earlier this year, in a conference call hosted by Credit Suisse, Italian solar company Kerself indicated that it expected FIT cuts of 15% to 28%.
Of course, it's important to remember that at this stage the Italian government is merely proposing the plan for an 18% feed-in tariff cut spread throughout the year. It's a long road to implementing the policy. Take Germany, where FIT reductions that have been debated throughout 2010 are supposed to go into effect in a week, and yet, the German upper and lower houses of parliament still have not come to agreement on the plan.
Source: The Street
Tuesday, June 22, 2010
Italy's Renewable Energy Sector Stunned by Government Cuts
ROME (Dow Jones)--A shock change in Italy's public incentives for renewable energy investment has brought financing for the sector to a halt, stunning aspiring players in the green economy that many hoped would be a driver of growth.
A decree packed into Italy's austerity budget relieves the state-run energy management agency, or GSE, from its role as the buyer of last resort for green certificates issued to support development of cleaner energy production.
Source: Wall Street Journal
A decree packed into Italy's austerity budget relieves the state-run energy management agency, or GSE, from its role as the buyer of last resort for green certificates issued to support development of cleaner energy production.
Source: Wall Street Journal
Entrion Signs Term Sheet to Acquire more than 30 MW of Italian PV Projects
Etrion Corporation (listed on Toronto stock exchange) has signed a non-binding term sheet to acquire more than 30 megawatts of solar power projects in Italy for cash consideration of approximately 45 million Euros plus the assumption of the related non-recourse loan facilities.
Marco Northland, the Company's CEO, commented, "We are very excited about this potential acquisition to strengthen our solar PV portfolio in Italy. If completed, the acquisition would more than triple the size of our company in terms of installed capacity, and it would make us one of the major solar power players in Italy. We look forward to closing the transaction soon."
The solar power plants that Etrion intends to acquire are expected to produce over 55 million kilowatt hours of electricity and more than 20 million Euros of cash flow per year. The projects are operational or near-operational, ground-based solar photovoltaic power plants that benefit from the 2009 feed-in-tariff of 0.353 Euros per kWh or the 2010 feed-in-tariff of 0.346 Euros per kWh plus a market price of approximately 0.08 Euros per kWh. The Italian feed-in-tariff is a premium purchase price for renewable electricity that is guaranteed by the Italian government for 20 years from the start of operations.
The acquisition of the solar projects is subject to completing the negotiation of a definitive agreement, which is expected by July 2010, and which will include standard closing conditions such as change of control waivers for the existing debt facility agreements.
The Company intends to fund the acquisition through a bridge loan from its major shareholder, Lundin Petroleum, subject to regulatory approval. The bridge loan would carry interest at LIBOR plus 3%.
Source: Etrion
Marco Northland, the Company's CEO, commented, "We are very excited about this potential acquisition to strengthen our solar PV portfolio in Italy. If completed, the acquisition would more than triple the size of our company in terms of installed capacity, and it would make us one of the major solar power players in Italy. We look forward to closing the transaction soon."
The solar power plants that Etrion intends to acquire are expected to produce over 55 million kilowatt hours of electricity and more than 20 million Euros of cash flow per year. The projects are operational or near-operational, ground-based solar photovoltaic power plants that benefit from the 2009 feed-in-tariff of 0.353 Euros per kWh or the 2010 feed-in-tariff of 0.346 Euros per kWh plus a market price of approximately 0.08 Euros per kWh. The Italian feed-in-tariff is a premium purchase price for renewable electricity that is guaranteed by the Italian government for 20 years from the start of operations.
The acquisition of the solar projects is subject to completing the negotiation of a definitive agreement, which is expected by July 2010, and which will include standard closing conditions such as change of control waivers for the existing debt facility agreements.
The Company intends to fund the acquisition through a bridge loan from its major shareholder, Lundin Petroleum, subject to regulatory approval. The bridge loan would carry interest at LIBOR plus 3%.
Source: Etrion
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