Sale of profitable but unaffordable PV plants in Spain: Analysis of a real case

J.C. Lomas, E. Muñoz-Cerón, G. Nofuentes and J. de la Casa

Energy Policy, 2018, vol. 117, issue C, 279-294

Abstract: The Spanish photovoltaic industry was stunningly successful during 2007–2010, fostered by a favourable feed-in tariff system. Nevertheless, the cost overrun of this promotion policy led to government legislation against existing PV plants. Although these investments will be profitable when the subsidy ends, according to the last law enacted in Spain (IRR = 7.4%), either a massive sale to vulture funds or the abandonment of PV plants is being planned. Owners are unable to cover the loans through which they were originally financed. In this scenario, investors find it more profitable to cancel all operational expenditures and allocate this working capital to cover their loans, although this measure implies a 22% energy reduction.

Keywords: Performance; Grid-connected PV system; Promotion policy; Profitability; Feasibility; Liquid asset (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:117:y:2018:i:c:p:279-294

DOI: 10.1016/j.enpol.2018.03.014

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