Apr 9 2010
One of the AES Solar Energy subsidiaries has secured €173 million to fund the development of Cellino San Marco (CSM) project. The CSM project is a 43 MW solar energy facility in Italy and is the largest project to achieve financial close. AES Solar Energy is a joint venture between Riverstone Holdings and The AES Corporation.
Five banks were involved in the financing process. They include Unicredit Mediocredito Centrale, Societe Generale, Dexia Crediop, BNP Paribas, and Credit Agricole Corporate and Investment Bank. SACE is involved in funding the solar photovoltaic projects and provides assurance for Societe Generale’s commitment. The funds cover about 85% of the project costs and the last date of maturity date is 18 years after construction.
According to Societe Generale’s, MD, Massimiliano Battisti, even though the regulatory environment of Italy provides an attractive option to invest in solar photovoltaics, the country’s dynamics makes it necessary to opt for novel financing solutions. This presents a significant problem for naïve investors. Battisti added that in such scenarios, it is necessary to have partners like AES Solar Energy, as they have both the ability and the financial expertise to deal with the local market and to complete the project successfully.
The construction of the solar energy project in Italy has already commenced and is estimated to achieve commercial operation by 2010 end. Cellino San Marco will utilize thin film panels from First Solar.
In addition to the 43 MW solar energy project, AES Solar Energy is also involved in the construction of 38 MW solar energy projects across Greece, Spain and France.
Source: http://www.aes.com