Expanded sources of promotion of solar thermal projects can be financed

Polaris solar PV net news: industry experts believe that “development of solar-thermal power generation projects should adhere to market-oriented PPA pricing agreement guidelines, and the expansion of private and public funding sources as much as possible, maximize promotion project financing, environment light hot market confidence could be enhanced. ”

Tower installed at or above the trough of the future financing of the project will be harder cut

According to relevant data, in the past 5 years, the global solar thermal power total installed capacity has increased more than twice times, 2GW from 2012 to 2016 exceeds 5GW installed. As of now, running trough power station installed capacity reached 4.2GW, Tower power station installed capacity of 640MW.

“Slot in operation of large power station installed capacity increased bank investments tank project confidence, making it easier to obtain bank loans with special policy support. So far as the Tower power station, in order to get the same favourable loan contract is relatively difficult. Tower power station that is currently running fewer banks there are concerns for Tower technology is mature. “Saudi Arabia’s ACWA Power international water and electricity company acquisition and finance, Executive Director of ThierryTardy said.

However, with the development of the Tower, its power generation efficiency significantly improved, with tower technology project is also increasing. According to statistics, currently under construction the Tower power station installed capacity of 791MW, trough power station installed capacity for 891MW. Compared to the trough and Tower, Fresnel and share dish solar thermal power station is a lot smaller, total global installed capacity of 170MW and 1.22MW, respectively.

There is reason to believe that, with the commissioning of more Tower power station, Tower technology through real case after proving themselves, will further reduce their access to financing difficulty, could even be larger than trough project.

Financing environment of growing confidence in the good light and heat

Investec Bank Investec Trishana Chandika power and infrastructure finance experts said that, due to the rapid development of solar thermal technology, coupled with global solar-thermal power total installed capacity increased investor confidence in investing in solar thermal industry continues to grow.

It is reported that investment located in the Investec South Africa 3-tank project. Investec as joint developers and stakeholders involved in the project. Meanwhile, Investec participated as a major investor with total investment of 5 billion South Africa RAND a 50MW Bokpoort solar thermal projects and a total investment of 10.4 billion South Africa RAND 100MW llanga1 project.

In addition, some of the investment banking and asset management group of 100MW Kathu solar power plants, while on the other a total investment of 11.8 billion South Africa RAND provides debt financing for solar thermal projects.

Tardy says solar thermal power plant in the power production in the early stages of a good operation, will help developers get better financing terms of the contract.

It is understood that investments in response to the investment risk, will require a period of approximately three years of risk assessment. In these three years, plant operation subject to the capacity of the expected performance standards and fully meet the EPC business commitments. However, as more solar thermal power station of operation proves that solar thermal power generation efficiency and feasibility, risk assessment for this three-year period will be gradually reduced.

“Investment will ultimately depend on the risk assessment of the project results. Cooperation with experienced developers and contractors is critical, they will track the successful development of the solar thermal projects, and the project has a complete set of comprehensive program of EPC. Meanwhile, power purchase agreement (PPA) is also particularly important, investor confidence in the long-term PPA will support debt of the debtor to fulfil repayment obligations. “Chandika said.

Former World Bank Middle East and North Africa Regional Director, said Jonathan Walters, independent energy Economist, PPA rate must be sufficient to cover power station construction and operation costs, and over the next 5 years, 10 years, or even 15 years to purchase electricity within a city is attractive enough. Otherwise, owners may consider changing the PPA power purchase agreements. Whenever possible, developers should reduce the cost of financing the project.

Competitive bidding down prices at the same time conducive to financing

In recent years, many solar-thermal power station, ACWA Power in Morocco the Noor series power station has benefited from competitive loan terms.

Morocco solar energy authority (MASEN) Noor series have won all 3 power station, including the World Bank’s clean technology Fund (CTF) multiple, long-term loans from international financial institutions.

According to CTF introduce, NoorII, NoorIII power plant construction is expected to cost $2 billion, a 80:20 ratio of capital-raising plans will be financing for the two projects.

The World Bank, Germany KfW Development Bank, the African Development Bank, the European Investment Bank and France Development Bank AfDB will provide preferential loans for these projects. Forwarded to the project developer is responsible for project loans from MASEN.

“Noor project PPA contract loans and financing structure for the developers to create a good environment, it is extremely important for the developers. “Tardy said.

By Noor project, for example, the Middle East and North Africa regions MENA solar-thermal power generation fall in auction bidding helped push the cost of the project, is even more important, cost also allows financial institutions to see the potential of solar thermal projects, given its more convincing arguments to support solar thermal projects.

“We are seeing is the MENA region using solar-thermal project competitive bidding/auctions in a way that solar thermal power generation of electricity prices fall further, Morocco tender has cost per kilowatt for solar-thermal power generation as low as 15 cents per kWh, compared with Spain 27 cents of electricity price has been slashed, Morocco proved by the fact that its sustainability. , “Walters said.

“Developers always focus on offers of low-cost financing global green climate Fund (GCF), especially after the Paris agreements signed in December 2015, GCF greater support for new energy projects. , “Walters said.

But so far, no light and heat power stations or transmission projects seeking funding through the GCF. And low-cost funding from the World Bank CTF has been to Morocco and South Africa solar thermal projects, and help them cut cost per kilowatt for pennies.

“If the EU withdrawal of subsidies for energy production in the region, select from North Africa sun belt supports the development of solar-thermal power station for the import of green energy, will the North Africa solar thermal project will have a high likelihood of obtaining financing. “Walter said.

Original title: expanding sources of promotion of solar thermal projects can be financed

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