Solar Millennium: Spanish Minister of Industry announces pre-registration for Andasol 3 and Ibersol

• Feed-in tariff is guaranteed for the full power plant lifecycle if the projects are completed within the next 36/48 months
• First stage of construction of the Andasol 3 solar field already completed
• Increased Investment security facilitates rapid realization of Ibersol in cooperation with investors

Erlangen, 11 November 2009 Today the Spanish Minister of Industry, Miguel Sebastián, announced that the Andasol 3 and Ibersol power plant projects, developed by Solar Millennium AG (ISIN DE0007218406), will obtain the pre-registration required to receive the Spanish feed-in tariff. The Minister announced this decision around lunchtime in the course of a meeting with representatives of the solar industry in Madrid. The ministerial order will be ratified by the Cabinet on Friday 13th. Pre-registration is needed before the statutorily guaranteed feed-in tariff can be granted. The entry into the register guarantees the receipt of the full feed-in tariff provided that the power plants are completed within the next 36 months (Andasol 3) respective 48 months (Ibersol).

Christian Beltle, CEO of Solar Millennium: "With the Andasol power plants in the south of Spain we have developed Europe´s first-ever parabolic trough power plants. Thanks to the pre-registration, there is nothing more standing in our way of rapidly realizing Andasol 3 and Ibersol as well." Ibersol is the fourth 50 MW parabolic trough power plant developed by Solar Millennium in Spain. It will be built in the Spanish Extremadura region, whereas Andasol 1 to 3 are located at the foot of the Sierra Nevada in Andalusia.

Thomas Mayer, CFO of Solar Millennium: "This is the breakthrough for a rapid implementation of both power plants and a further milestone on our stringent growth path. The increased investment security thereby provided will make our projects more attractive to investors. In line with the example set by Andasol 3, in which Stadtwerke München, RWE Innogy, RheinEnergie and MAN Ferrostaal invested, we plan to realize Ibersol together with partners, who provide the equity required for its construction."

The construction of Andasol 3 is underway, and the first stage of the solar field with approximately 60,000 m² of collector surface has already been completed. It is the third solar thermal power plant project with a capacity of 50 MW that Solar Millennium has developed in the province of Granada. Andasol 1 and Andasol 2, the two adjacent sister projects with the same capacity of 50 MW each, are already operating.

The power plants will mainly cover demand peaks in the Spanish grid during the summer months. The high electricity demand is primarily caused by the energy consumption of air conditioners. Each power plant additionally features thermal storage. Full storage reservoirs ensure additional power plant operation for up to eight hours, meaning they can be operated at night as well. The storages are each comprised of two tanks measuring 14 m in height and 36 m in diameter and contain approximately 30,000 tons of liquid salt.

About Solar Millennium AG:
Solar Millennium AG, Erlangen, is an international company in the renewable energy sector, with its main emphasis on solar-thermal power plants. Together with its subsidiaries, the company specializes in parabolic trough power plants, a proven and reliable technology with which the Group has adopted a leading position worldwide. Solar Millennium covers all important business sectors along the value chain for solar-thermal power plants - from project development and technology to turn-key construction as well as plant operation and investments in power plants. In Spain, Solar Millennium developed Europe's first parabolic trough power plants and realized them with its partners. Additional projects are planned around the world with an overall capacity of more than 2,000 megawatts. The current regional focus is on Spain, the US, China and North Africa. Furthermore, the company has the aim of achieving market readiness for the so-called Blue Tower technology for the generation of product gas that is rich in hydrogen through the reformation of regenerative residual materials, and also for solar chimney power plants in the long run.

About solar-thermal power plant technology:
Solar-thermal power plants generate electricity by converting solar radiation into heat energy. In a parabolic trough power plant, trough-shaped mirrors concentrate the incidental radiation onto a pipe in the focal line of the collector. Its absorption heats a fluid heat medium in the pipe, generating steam in the power block through a heat exchanger. As in conventional power plants, the steam powers a turbine to generate electricity. By integrating thermal storage, electricity can be supplied on demand, even after sunset.

You can download this press release here.