Solar acquisitions double to over $10 billion in 2011
Investors purchased a record 3.9 GW of solar photovoltaic projects in 2011, worth an estimated $10.8 billion.
Investors purchased a record 3.9 GW of solar photovoltaic projects in 2011, worth an estimated $10.8 billion.
This increased the gigawatt capacity purchased by 122 percent from 2010, according to new research published by Bloomberg New Energy Finance, a London-based consultancy firm.
The report examined 221 deals made from 2006 to 2011, and found that Italy was the most active market for transactions involving operating assets during 2011, totaling 540 MW purchased. 242 megawatts of this total was sold by Athens-based construction company Terna SA.
Contrasting that, however, the top five individual deals when looking only at the number of megawatts transferred took place in the US, all involving assets currently in production rather than in operation.
A boom in solar PV in Italy and Spain has left a pool of assets generating very attractive cash flows for contractors, developers and manufacturers. These companies have a high cost of capital and many prefer to recycle what funds they have into new projects.
Worldwide, 2.8 gigawatts of the sales made during 2011 consisted of finished or partially completed installations, leaving 1.1. gigawatts in sites with permits, but yet to begin construction.
The valuations placed by purchasers on PV projects have dropped by approximately 44 percent from their peak back in 2008. The report, entitled The Solar Portfolio Hunters: Focus On The Acquisition And Valuation Of Solar Assets, showed that global average sale values declined from a peak 6.4 million Euros per MW in 2008 to 3.6 million Euro per MW in 2011.
Image 01 - Solar energy in it's finest form. Tomstoy.A.A
Image 02 - Solar energy, Apteva.