Solar projects have hit financing and power purchase agreement roadblocks that developers didn’t expect. Banks are reluctant to finance billion dollar projects and utilities don’t want long-term PPAs on their books, said Scott Frier, coo at Abengoa Solar during a panel discussion. “I don’t see solar projects going in like hot cakes like we predicted a few years ago” he said.
It’s a Catch-22 for large solar projects--banks want to see a track record but the projects need enormous capital to come online, he told PFR on the conference sidelines. Once a few similar size projects start generating, the process will get easier for developers but Frier expects it to continue to be “slow going.”
The government will remain a player in the solar world, providing financial incentives to keep renewables alive. “Whether you like it or not the government is going to be your partner in the energy industry,” said Paul Allen, chief environmental officer at Constellation Energy.
Source: Power Finance & Risk
