German solar and wind developer SoWiTec has announced insolvency due to excessive debt.
In its announcement, the company said it has opened an insolvency case in the German city of Tübingen due to illiquidity and over-indebtedness. The company’s subsidiaries, SoWiTec International, SoWiTec Projekt and SoWiTec Operation, have also opened insolvency proceedings.
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The company said that insolvency became “unavoidable” in recent days, after management attempted to prevent claims being asserted by “a supplier” and failed to secure a deferment of financial obligations.
SoWiTec expects its operations to continue “initially” after the appointment of an insolvency administrator.
The majority of SoWiTec’s operational projects are wind power assets, mostly in Germany. It is developing around 8GW of solar PV capacity in Brazil, over 2.5GW in Mexico and 335MW in Argentina.
PV Tech has contacted the company for more information about its insolvency.
We have heard reports of challenging market conditions for European solar developers in recent months. Industry veteran developer and engineering, procurement and construction (EPC) firm Belectric told us last week that the sector faced a “critical” situation without widespread changes (subscription required) and earlier this year the chief of staff at developer Encavis, JP Kock, told us that the sector would likely see consolidation and bankruptcies as the requirements for solar development across the continent change.
