Erlangen, Germany [RenewableEnergyWorld.com] Solar Millennium AG has engaged Citigroup and Deutsche Bank to provide advisory services to structure and secure financing for several planned solar thermal power plants across the Southwest U.S. Each project has an expected financing volume of more than US $1 billion.
Together with Solar Trust of America, Solar Millennium’s U.S. subsidiary, Citigroup and Deutsche Bank are structuring the debt and equity financing and provide support in securing subsidies and loan guarantees granted by the Department of Energy through the American Recovery and Reinvestment Act.
“The fact that these two globally renowned banks are involved in financing our projects is an important factor of success in their implementation. We have thus moved one step closer to their realization. The next task is to attempt integrating government subsidies and guarantees in the financing structure,” said Thomas Mayer, CFO of Solar Millennium.
The Solar Millennium Group already has power purchase agreements (PPA) in place with Southern California Edison (SCE) for two parabolic trough power plants of 242 megawatts each with an option to include a third. The projects, located in Ridgecrest, Palen and Blythe, are in an advanced stage of development.
The company has also concluded a Memorandum of Understanding with Nevada Energy, the utility supplying Las Vegas and other major cities in Nevada and California, for the development of at least one solar thermal power plant in the Amargosa desert (Nevada).