Unable to secure closure on a previous deal to sell its solar project pipeline to solarhybrid and investor funding for its planned expansion of its Ibersol parabolic trough power plant project, Solar Millennium has filed for the opening of insolvency proceedings at the district court in Fuerth, Germany. The module supply deal between First Solar and solarhybrid becomes suspect.
Though a previously successful solar technology, the ability to reduce production and construction costs of parabolic trough technology came into question as PV technology pricing has fallen dramatically in the last few years.
The previously announced acquisition of its US project pipeline by solarhybrid, which planned to use PV instead of trough technology – was confirmation that the technology was increasingly proving uncompetitive.
Solar Millennium said in a brief statement soon after issuing an announcement that the deal with solarhybrid had yet to be concluded that expected funds would have enabled the company to continue and develop new business opportunities. However, with both fund generation plans not concluded, insolvency was the only route to take to protect existing assets for the shareholders and its creditors.
First Solar connection
However, with the solarhybrid project pipeline transaction put on hold, it raises issues over a proposed deal with First Solar by solarhybrid to use its CdTe thin-film modules for the Blythe (1000MW) and Palen (500MW) projects, within the Solar Millennium pipeline.