Prime Sun to build 500 MW of solar in Europe

EUROPE - Green energy developer Prime Sun Power Incorporated has announced plans to construct and operate photovoltaic (PV) solar power plants in Europe with a combined capacity of 500 megawatts (MW).

Through 2013, the company will acquire PV power plants and operate third-party PV installations in Turkey, Greece and Italy. About 150 MW of the total installed capacity of 500 MW is likely to be acquired by European investors. Prime Sun Power is expected to use the revenues from such third-party sales to fund construction of its own PV power-generating facilities in the region.

In association with PV equipment suppliers and leading engineering, procurement and construction contractors, Prime Sun Power is also proposing to play the role of a consortia leader and execute solar power projects on a turnkey basis. The company has already signed a framework agreement with a European financier to deliver a 100-MW, grid-connected solar plant on a turnkey basis. The final contract is expected to be signed shortly.

Prime Sun Power is also carrying out technical feasibility studies and due diligence exercises to secure land and licenses for new PV plants, including 50-MW and 100-MW facilities in Greece and Italy, respectively. Discussions are in progress with financiers to finalize funding for long-term expansion. Prime Sun Power is also proposing to establish PSP Europe AG, a fully owned subsidiary, which will own and operate the company's assets in Europe.

Prime Sun Power is focusing on developing clean-energy projects. In the long term, solar, biomass and wind power are expected to emerge as viable renewable energy options. Industry experts have observed that these resources will greatly reduce the carbon footprint left by power generation.

According to a report titled "Why Alternate Energy?" published by Prime Sun Power and quoting a U.S. Energy Information Administration report from 2008, solar power is the fastest-growing renewable energy source. By 2030, global power generation is estimated to grow to 33.3 trillion kilowatt-hours. Electricity generation is forecast to increase by 1.3% every year in Organization for Economic Cooperation and Development (OECD) countries, while non-OECD countries will record annual average growth of 4%. The solar power industry is expected to witness parallel growth and record about 69% growth through 2025.

The report indicates that by 2011, solar industry revenues are estimated to increase to $31 billion from the present $19 billion. Globally, the industry is expected to enjoy greater popularity, larger government-led subsidies and incentives, development of new and larger markets, state-of-the-art technologies, and better economies of scale.