Financing Concentrating Solar Power

The role of independent regulators should be strengthened. In particular, they need to be equipped with an adequate, separate budget, clearly defined powers to make binding decisions, and irrevocable, fixed-term appointments for senior staff.Independently of the specific market design and industry structure, it is essential that costreflective price signals exist and are able to trigger investments. The phase-out of all fossil fuel subsidies is a key tool to achieve this. While cost-reflective price signals are needed to ensure energy efficiency and to relieve state budgets, it must be ensured that electricity does not become unaffordable for vulnerable consumers. This section elaborates on the key actions required today to facilitate the transition to renewables beyond 2020. It treats all indispensable elements of the transition: the investment framework, renewables support, (international) transmission as well as industrial policy and local value creation.

Capital Flow CSP

• Abengoa Solar – financed PS10, PS20, Solnova ( 2 x 50MW) in Spain and Algeria & Morocco ISCCS with bank debt and same plan for APS Solana (280 MW) in US
  
• Solar Millennium - financed Andasol 1 & 2 in Spain with bank debt
  
• Acciona – financed Nevada Solar 1 (64MW) in US with bank debt
  
• GEF provided $200M for ISCCS projects in Morocco (in construction), Egypt & Mexico - - India project was cancelled.
  
• Trough companies didn’t anticipate major problems attracting tax equity investors/commercial debt as the ITCs were renewed last year but the global financial crisis has created new uncertainty and US projects are now being delayed
  
• Ample equity available for start-ups as evidenced by: Ausra, SkyFuel, eSolar, Bright Source and Solar Reserve all conducting successful VC fund raises

CSP DropBox

For more information on financing of CSP Projects check out the CSP DropBox