Background Information

Hermes Cover for a solar thermal energy project in Spain

August 2011

The world's first solar project using Fresnel technology will be financed with Hermes Cover. In the region of Murcia in Spain the first commercial Fresnel solar thermal power plant ("Puerto Errado 2") will be constructed until March 2012. In comparison with the well-known parabolic troughs, this innovative technology using flat mirrors requires considerably less surface space and material. Thus, the costs of both the initial investment and the operation can be significantly reduced. Fresnel technology means that numerous mirrors on a surface of 302,000 m² concentrate the sunlight onto an absorber tube to produce vapour. A conventional power plant uses this vapour to generate electrical power. Each year more than 22,000 t CO2 will be saved as a result.

The Federal Government supports this unique project with an isolated buyer credit guarantee within the framework of a project finance scheme. Project finance schemes are based on the revenues generated by the project itself; with the help of this financing concept major projects can be realized. The credit risk is basically geared at the project's economic viability and a comprehensive collateral structure. In accordance with the OECD Consensus credit periods of up to 18 years may be agreed for renewable energy projects.

This pilot scheme combines the innovative Fresnel technology and the established power generation with steam. Due to this the planned power station has a high level of availability. The generators with two 15 MW turbines will generate about 50 GWh annually. Long-term off-take agreements for the power generated and the high feed-in tariff guarantee the viability of the project.

The German Novatec Solar GmbH in Karlsruhe will supply the innovative Fresnel technology as general contractor.

The successful construction and operation of the solar thermal power project "Puerto Errado 2" constitutes a significant step forward both for the further development of solar technology as a whole and for Germany as a centre of high technology.