Via its US subsidiary Solar Trust of America, LLC, Solar Millennium AG, Erlangen, has engaged Citigroup and Deutsche Bank to provide advisory services to structure and secure financing for several planned solar thermal power plants across the southwestern US. Each power plant has an expected financing volume of more than one billion US dollar. Together with Solar Trust of America, the mandated banks are structuring the debt and equity financing and provide support in securing subsidies and loan guarantees granted by the Department of Energy within President Barack Obama’s economic stimulus program.
Thomas Mayer, CFO of Solar Millennium: “The fact that these two globally renowned banks are involved in financing our projects is an important factor of success in their implementation. We have thus moved one step closer to their realization. The next task is to attempt integrating government subsidies and guarantees in the financing structure.” Uwe T. Schmidt, CEO of Solar Trust of America, adds: “Our aim is to become solar energy market leader in the US and to start realizing the first solar power plants in California and Nevada as early as at the end of 2010. In doing so, we will also be helping these states to meet their renewable energy mandates. At the same time, we will stimulate the regional economy by creating thousands of new jobs in the construction and operation of these solar power plants”.
Regarding the advisory mandate by Solar Millennium Group, Simon Wilske, Co-Head Corporate Finance Group, Citigroup, said, “Solar Millennium is one of the leading technological partners in the area of solar thermal power plants, which in turn is one of the most promising segments in the global market for renewable energies. As a longstanding advisor of Solar Millennium and one of the leading banks in this sector, Citigroup is pleased to support Solar Millennium with these significant projects in the US.”
Dr. Thomas Rüschen, Global Head Asset Finance & Leasing, Deutsche Bank, pointed out the strategic importance of solar energy for his institution, “Deutsche Bank is pleased to be an advisor to Solar Trust of America and its shareholders in the growth market of Renewable Energies in the US. The financing and advisory of the solar sector is one of our core businesses. Deutsche Bank also collaborated with Solar Millennium Group on the Desertec Industrial Initiative to ensure a sustainable supply of electricity for future generations.”
In implementing the projects, Solar Trust of America, can avail itself of the Solar Millennium Group’s extensive expertise in the development, financing and technology of solar thermal power plants and MAN Ferrostaal AG’s experience in the design, turn-key construction and operation of major industrial plants. The US plants will also feature the proven and efficient parabolic trough technology of Flagsol GmbH, the technology subsidiary within the Solar Millennium Group.
The Solar Millennium Group already has power purchase agreements (PPA) in place with the Californian utility Southern California Edison (SCE) for two parabolic trough power plants of 242 megawatts each with an option to include a third. The projects, located in Ridgecrest, Palen and Blythe, are in an advanced stage of development. The Group has also concluded a Memorandum of Understanding with Nevada Energy, the utility supplying Las Vegas and other major cities in Nevada and California, for the development of at least one solar thermal power plant in the Amargosa desert (Nevada).
Tags: concentrated solar, solar thermal, US
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