Backers believe sun is still shining on solar players

Funding for capital intensive projects may currently be as scarce as hen's teeth, but apparently nobody has yet told investors in the solar energy sector.

While industry insiders accept it is increasingly difficult to attract financing, several large scale projects this week announced that they had secured major backing and would begin work on building new solar capacity.

Leading the way, Spanish engineering firm Acciona announced this week that Mitsubishi has stumped up an undisclosed sum to take 34 per cent stake in its €261m Amareleja photovoltaic solar plant project in Portugal.

The company said that the 45.8MW plant is the world's largest solar PV facility and will generate enough power for 30,000 homes, avoiding 89,383 tonnes of CO2 a year in the process.

The company said that the deal with Mitsubishi was likely to be the first in a series of alliances between the two companies, adding that the two firms were seeking to "extend their collaboration in renewable energy and other sustainable development projects worldwide".

The move came in the same week as US solar giant SunEdison announced that it had defied currently tight lending conditions to secure $20m in project financing from Union Bank.

The company said that the financing deal was closed last month and would be used to fund two projects, including a 1.7 MW ground mount installation in Colorado.

Carlos Domenech, shief operating and finance officer at SunEdison, said that the company’s model of building and operating solar facilities under long term power services contracts had helped it secure the latest funding round.

“Despite a contraction in the U.S. tax equity market, SunEdison’s leading investor relationships have allowed us to develop financing innovations that bring immediate tangible value for our current and new investment partners," he said. "These improved structures also allow us to more efficiently scale our U.S. tax equity financing and serve a larger group of customers."

Meanwhile, German solar firm Solar Millenium announced it has inked a deal with engineering giant MAN Ferrostaal and US utility company Nevada Energy to cooperate on the development of a new 250MW solar thermal plant in the Amargosa desert.

Christian Beltle, chief executive of Solar Millennium, said that work was scheduled to begin on the $1bn project next year creating over 1,000 jobs. He added that the plant would act as a forerunner for further solar thermal projects in the region.

"Some areas of the south-west of the United States have excellent solar radiation conditions, with up to 2,800 kWh/m²/a, and many of these regions are close to large population centres," he said. "In the future, solar-thermal power plants will play a big part in covering the electricity requirements in Nevada in a climate-friendly way."

And in related news, European clean tech investment fund Foresight Group has reportedly signed two contracts for the construction of 10MW of solar PV projects in Italy. The deals with Italian solar firms Energos and Ecoware will see 10 plants installed across souther Italy.