Financing granted for first European parabolic trough power plant

Financing for the first European parabolic trough power plant, Andasol 1, was granted on 31st May 2006 in Madrid and the corresponding finance contracts were signed with the banks. The construction of a large-scale solar-thermal power plant with a capacity of 50 Megawatts is to begin within two weeks. After commissioning in approximately two years, the solar power plant in the Granada province of southern Spain will be able to provide around 200,000 people with electricity. It will be the largest solar power plant in the world with a collector area of over 510,000 square meters.

Solar Millennium AG, based in Erlangen, Germany, has successfully developed the Andasol 1 power-plant project in recent years and has sold the majority to the ACS/Cobra group, the largest construction company in Spain. The project development fee that is applicable with the conclusion of the financing negotiations comprises a significant portion of predicted turnover of Solar Millennium AG for the current 2005/2006 fiscal year.

Now that the financing has been granted, the acquiring company will be commissioned to construct the large-scale power plant. Flagsol GmbH, a technology subsidiary of Solar Millennium AG, will take over the planning, design and monitoring of the construction of the solar field.

Background
The solar-thermal power plant will generate 172 gigawatt hours of solar electricity per year. Thermal storage systems mean the availability of electricity can be planned in advance and electricity can also be provided after sunset. Two further power plants in the same design are also to be constructed at the same location in Andalusia. Furthermore, Solar Millennium AG is also planning even more large-scale solar power plants at other locations throughout Spain. These projects are also to be implemented in cooperation with Spanish corporations.

Christian Beltle, the Chairman of the Board of Solar Millennium AG says, "The financing that was granted by the banks today is a milestone for the entire solar-thermal power plant market. The confidence that the authorities, investors and banks alike have invested in this technology provides an important boost for the implementation of further solar-thermal power plants across the globe. The granted financing means that Solar Millennium AG has reached an important company target which will significantly facilitate the implementation of future projects."

The technology
Solar-thermal power plants generate electricity using the heat caught from solar radiation. In a parabolic trough power plant, trough-shaped mirrors focus the incident solar radiation onto a pipe in the focal line of the collector. A heat transfer medium in the pipe is heated, and this generates steam in the power block section using heat exchangers. The steam is then used to operate a turbine which generates electricity in the same way as in conventional power plants. Integration of a thermal storage system means the availability of the electricity can be planned. Therefore, the solar power plants can also generate electricity after sunset.

About Solar Millennium AG
Solar Millennium AG is an innovative technology and service company that is active around the world. Its headquarters are in Erlangen (Germany). Together with its daughter companies, it offers a wide range of services from construction to the operation of large-scale solar-thermal power plants. It specializes in parabolic trough and solar chimney technologies and has reached a leading position worldwide in this energy marketplace of the future. The main focus of current projects is Spain, the USA and China.