Spain unveils plans for new 50MW solar plant

Spain's position as Europe's leading market for utility-scale solar projects was underlined today with the unveiling of plans for a new 50MW solar thermal plant.

Solar energy specialist Sunstroom Energy Investments announced it is planning to build the €300m (£258m) solar thermal electricity plant in the Extremadura province of Spain, one of the sunniest regions in the world.

The plant, to be known as Thermostroom 1, will cover a surface area of 271 hectares and will use parabolic mirrors to concentrate heat from the sun. The resulting heat will be used to create steam which will drive a turbine to produce electricity.

Iain Morrison, managing director of Sunstroom, said he hoped the facility would be constructed within two years. "With our proven track record of developing solar plants in Spain, big-name industry support, and ongoing legislative incentives, we are confident that the Extremadura park will be yet another highly profitable project, generating consistent returns for our investors over its 40-year life," he added.

Morrison said Thermostroom 1 has full support from local municipalities and mayors, adding that the company has already secured a lease on the site along with outline planning, environmental and operational permits.

The plant will take advantage of Spain's solar energy feed-in tariffs, which will guarantee the company a price of €27.84 per kW during the first 25 years of the installation and then at 75 per cent of this level for the rest of the project's life – estimated to be a further 40 years.

Sunstroom, which already operates two solar photovoltaic plants in Spain, said it expects the plant to generate a projected annual revenue of about €36m.