Solar Millennium’s business activities focus on the development, financing and construction of solar-thermal power plants. The main prerequisite for realizing a solar-thermal power plant is a feasibility study with positive results. The primary objective of this analysis is to calculate the expected earnings from future power plant operations.
Subsidization of solar-thermal power plants is governed by national law and varies from country to country. In Spain, for instance, the feasibility calculations are based on a state-guaranteed feed-in tariff for 25 years and beyond. In the U.S., this is the so-called Power Purchase Agreement, an individual contract with a utility that determines different solar power reimbursement tariffs for different times of the day. The incentive for American utilities to sign these Power Purchase Agreements is the commitment by some of the states to provide a certain percentage of energy generation by using renewable energy sources.
In addition to developing and realizing their own power plant projects, Solar Millennium and its subsidiaries can also act as licensor, engineering service provider and general contractor in third-party projects, e.g. in tendering procedures. As a vertically integrated group, Solar Millennium has activities at all main value-added levels of solar-thermal power plants and is thus able to generate respective income from all planning and implementation phases of a solar power plant project.
This positioning along the value chain of solar-thermal power plants is a sound basis for sustainable competitiveness in a dynamic growth market. The integration of the diverse business segments and companies under the Solar Millennium AG umbrella facilitates essential synergy effects. As such, the needs of technology developers and power plant builders can already be taken into consideration during early phases of project development.
The entire value chain covered by Solar Millennium is comprised of the three segments of “Project Development & Financing,” “Technology & Construction” and “Power Plant Investment & Others” (see chart above).