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Int'l Interest in Spanish Solar Power Plants Skyrockets

In the 21st century, when capital is moved freely wherever it is best for investors, the solar photovoltaic (PV) industry shows a potential difficult to match. In a world alarmed by climate change, which financial markets eager of attractive alternatives to the gloomy real estate market, many have started to look at the Spanish sun.

Moved by the favorable conditions granted by the Spanish legislation, the stable long-term retributive scenario, the steady economic growth of the country and the sure bright sun in the sky - as long as climate change keeps on granting Spain such privilege - solar investors are approaching Spain with deep cash-full pockets.

According to Edwin Koot, president of SolarPlaza.com, a Netherlands-based company dedicated to studying the solar PV industry, the interest from traditional investors on the solar PV industry and its business potential is growing at a great pace. And Spain offers second to none opportunities for this.

"The country's economic growth, its climate conditions and the positive legislation have turned Spain into an obvious choice for investors," said Koot.

"Although the market was saturated in the last months, the future seems now brighter, with plenty of new projects that are bringing the attention of investors from all over the globe. We are even regularly consulting U.S. venture capital firms about the market situation in Spain. This market is considered to be one of the major markets in the world," he added.

On the other side, numerous Spanish companies are developing these Huerta solares, or solar power generation park projects.

"Permits are the most complicated part of the process, as this can only be done by Spanish companies. However, with a market that is still far from meeting the Government's target for the coming years, bureaucracy should stop being a problem," said Koot.

As a global platform, SolarPlaza receives requests for their matchmaking service from several international investors seeking projects in Spain. The company has observed that investors do not necessarily look for projects already under construction phase.

Indeed, some of the funds can even help developers by financing the initial phases of the promotion avoiding external financial schemes during the whole park development and construction period.

"Most of these bigger investors are looking for projects above 1 MW and a return on investment (ROI) higher than 10%. The interesting thing is that the capital really is no problem, as long as all permits and licenses are granted," said Koot.

Source: RenewableEnergyAccess.com