Australia's First Large-scale Solar Energy Project In Doubt As Investor Pulls Back
THE AUSTRALIAN - The decision by TRUenergy to write off its entire investment in Solar Systems has placed the development of what would be Australia's first large-scale solar energy project in doubt, along with ambitious plans for overseas expansion.
It signed a $285m development agreement for the Mildura project, as well as paying $40m for a 20 per cent stake in Solar Systems.
But TRUenergy's Hong Kong-based parent, CLP, has decided to write off its entire $HK346m ($53m) investment in Solar Systems, which includes R&D spending since the original purchase, because of its failure to attract another strategic or financial equity partner.
"We do not believe that it is justifiable for CLP to continue funding a technology business without an additional strategic or financial partner to share the ongoing development risk," CLP said.
It is believed Solar Systems has blamed the tight credit and project development market for its failure to attract another significant investor as part of its latest fundraising program, which sought tens of million of dollars to help ease liquidity issues and help fund its overseas expansion, in both Asia and the US.
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