GE to buy two CSP plants in Spain to ACS despite new adverse regulatory framework
According to information published in some Spanish medias, US' General Electric has agreed to buy two Concentrated Solar Power plants to Spain's ACS.
Manchasol 1 & 2 are twin parabolic trough plants of 50 MW each with thermal energy storage, located at Alcazar de San Juan and Ciudad Real in central Spain, built and operated by Cobra, a wholly owned subsidiary of ACS.
The two companies would have been negotiating the purchase agreement for some months, waiting to assess the regulation changes made by Spanish government in order to know the revenues that the CSP plants could achieve in the new regulatory framework.
Why could be GE interested in this plants, despite the adverse regulatory framework?
On one hand, if the price is adequate for GE and there are no new changes in the regulatory framework, as it's expected, the deal could be profitable for GE.
On the other hand, in many tenders all over the world, it's usually a mandatory requirement -or at least a key point- to demonstrate experience within this technology, by operating, owning or building other CSP plants.
Otherwise, ACS could reduce its exposure to this market and have access to liquidity.