.Most of the State Electricity Distributors are in poor financial shape and have been known to frequently default on their financial obligations.With almost 70-75% of the estimated $2.2 Billion in the first phase of the PV projects to be financed by debt,this represents a big hurdle for the success of Solar Energy.The government needs to come out with some sort of arrangement of guarantees for the smooth functioning of the Solar Mission and instill confidence amongst investors and Banks.
The Indian Government Cabinet today gave approval to a new Direct Tax Code which is supposed to fundamentally change the Tax Structure in the country.This Code which was unveiled last year with much fanfare as a panacea to India’s complicated taxation laws has diluted most of its changes.The simplification has been only cosmetic in nature […]
Czech Republic came out with a Renewable Energy Framework which will finish off the Solar Sector in the country if passed in the current form.Czech despite its small size has become the 3rd largest market for Solar Energy in Europe driven by high Feed in Tariffs.These guaranteed electricity rates have led to a Boom in […]
Norway has been hailed as the toughest cutter of Greenhouse Gas Emissions amongst the devloped countries promising to cut Carbon Emissions by 30-40% by 2020 from the 1990 Levels.Compared to this USA has promised a measily 17% cut from 2005 levels and the EU only 20% by 2020 from 1990 levels.Norway’s cost of cutting emissions […]
Note the Solar EPC business typically is a low margin business like the general Enginereering Procurement and Contract (EPC) Sector.A number of Solar Companies like Q-Cells,MEMC,Sunpower and First Solar in recent times have entered this segment to generate a captive demand for their solar products.Nobody derives significant profits from this part of the supply chain due to its lower margin structure.With low barriers of entry and little bargaining power,this part of the Solar Food Chain is the last place you would expect a high technology company like Toshiba to enter.The Nikkei report says that Toshiba wants to enter the Smart Grid business by leveraging its experiece of the Solar EPC business.
Italy largest power utility Enel and giant Chinese utilities Huaneng and Datang Group are looking to spinoff their Renewable Energy Arms through IPOs.Note Enel has been looking to raise money to reduce it massive 51 billion euro debt burden and has been trying to offload its Green Energy Subsidiary for quite a while now.Enel is […]