Solar Millennium AG cooperates with power utilities in Spain

Entry of the EDP group in Andasol 3
Cooperation agreement for further solar-thermal power plant projects

Solar Millennium AG, based in Erlangen, Germany, has gained yet another important partner in NEO Energía, a renewable energy subsidiary of the EDP Group (Energias de Portugal, S.A.). With this new cooperation, the Erlangen-based company is continuing to pursue its strategy of implementing large-scale solar-thermal power plants in cooperation with large regional partners. The EDP group is one of the largest European electricity companies and is the majority shareholder of the Spanish Hidrocantábrico group.

NEO Energía is one of the leading companies in the renewable energy sector on the Iberian Peninsula and is participating in the Andasol 3 project to build a 50-MW parabolic trough power plant. In order to do this, NEO Energía has bought a 50 percent share in the corresponding project company, Marquesado Solar S.A., from Solar Millennium AG via its Spanish subsidiary, Generaciones Especiales I S.L..

The Andasol 3 solar-thermal power plant is the third project that Solar Millennium has developed in the Granada province in southern Spain. This represents the largest location in the world utilizing solar energy. Just like the essentially identical Andasol 1 and 2 power plant projects, this finance package for the Andasol 3 solar power plant is also worth between 250 and 300 million Euros and will supply 200,000 people with solar electricity. Construction is expected to start within 18 to 24 months.

Christian Beltle, the Chairman of the Board, says, "The planning permission hearings are already well advanced. Individual permits have already been granted and reimbursement according to the Spanish energy law for solar-thermal electricity has already been agreed upon. The grid connection of the power plant has also already been approved."

At the same time, Solar Millennium AG has also concluded a cooperation agreement with NEO Energía for further solar-thermal power plants. This includes the joint implementation of two solar power plants that have already been developed by Solar Millennium. In addition to the takeover of shares in the corresponding project companies on the part of NEO Energía, Solar Millennium AG will also participate in two of NEO Energía's project companies. The agreed projects will be carried out in the southern Spanish provinces of Extremadura, Murcia and Castilla La Mancha.

Christian Beltle, the Chairman of the Board, says, "The inclusion of NEO Energía in Andasol 3 and the cooperation agreement for several large-scale solar-thermal power plants has greatly strengthened our long-term market position on the Iberian Peninsula. The prospects for implementation of further parabolic trough power plants are an important signal for this type of solar technology that is sparking more and more interest across the globe."

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.