Obama's Latest Solar Scandal: Parent Of Arizona's $2 Billion Solana Plant Is Broke

[timosman]

http://www.phoenixnewtimes.com/news/...-broke-7867128

BY RAY STERN WEDNESDAY, DECEMBER 2, 2015




Abengoa, the Spanish company that built the expansive $2 billion concentrated solar plant near Gila Bend, is broke and headed toward a possible bankruptcy filing.

It's the latest solar scandal for the Obama administration, which picked Abengoa for billions in lucrative loan guarantees. This week, Abengoa filed in Spain for protection against its creditors, which is the first step toward a possible bankruptcy filing.

Media reports say bankruptcy should come within four months if Abengoa can't pay its bills in a debt-restructuring move. If the firm goes bankrupt, taxpayers may be on the hook for loans that won't be paid, and the company's assets would be sold off.

It would be the biggest bankruptcy in Spain's history.

The company has several renewable-energy divisions, including its much-touted Abengoa Solar. Concentrated solar plants like the many-mirrored Solana project near Gila Bend are expensive and use a lot of land but have the advantage of providing clean, solar-generated electricity for several hours after sunset. Yet the Solana plant has been plagued with problems from the beginning.

The plant opened late amid allegations of stiffing subcontractors, immigration fraud, and other problems. A federal investigation into the company remains ongoing.

As New Times first reported, the plant's electricity generation has been underwhelming since it opened. It produced only two-thirds of expected capacity in its first year of operation and only half its expected output for the first three months of this year. Officials with Abengoa and Arizona Public Service told New Times that generation would improve over time.

Abengoa also built the Ivanpah CSP in California, which also has been severely under-performing.

If Abengoa does go bankrupt, local electric customers shouldn't feel any pain directly. APS is contracted to buy power from Solana as its produced, but the local utility isn't linked to the investment, APS spokeswoman Jenna Shaver says.

Indirectly, though, Abengoa's financial problems are a cloud over the solar industry in Arizona and elsewhere.

[libertyjam]

Why is it mostly Spanish companies are always picked for these PPP infrastructure operating and building projects? Energy projects - Spanish owned, 99 year leases on new Toll roads across the country - Spanish owned and operated. Ports on US soil - Foreign owned. New bridges needed - has to be a special "Calatrava design" for hundreds of millions more than what can be built. What other major infrastructure has been sold to foreign interests? Solar? Wind boondoggles? anything else?

[puppetmaster]

Really more taxpayer waste under obama.....surprise.

[Dr. Dog]

Why is it mostly Spanish companies are always picked for these PPP infrastructure operating and building projects? Energy projects - Spanish owned, 99 year leases on new Toll roads across the country - Spanish owned and operated. Ports on US soil - Foreign owned. New bridges needed - has to be a special "Calatrava design" for hundreds of millions more than what can be built. What other major infrastructure has been sold to foreign interests? Solar? Wind boondoggles? anything else?

Because over the last 25 years since Spain joined the EU there has been a massive construction boom. Spanish companies have great expertise in big infrastructure projects. If you look at Spain, pretty much all the major infrastructure was built in the last two decades (highways, railways, bridges, airports, power plants, water treatment plants). Now with the downturn in Europe, Spanish companies are looking abroad and they have the full backing of the Spanish state and banks (easy financing).

[Suzanimal]

Obama Fights “Climate Change” With His Cronies and Your Billions

It looks like Spain’s largest corporate failure may not fail at all if its crony benefactors have anything to do about it. In fact, government talking heads have alluded to the fact that the company is “too innovative to fail.” So innovative, you see, that it can’t survive in the market because it is reliant upon government subsidies where there is no market for its products.

...

In Spain, a company is given 4 months to reach agreement with its creditors. Last week marked that day when that agreement was due, otherwise the company would have to seek insolvency proceedings. Except that on the day of reckoning last week, Bloomberg reported that “more than 75 percent of the company’s lenders agreed to continue talks for as much as seven months, Seville-based Abengoa said in a regulatory filing Monday.”

Note what banks are lining up at the trough of credit default swaps. Now what’s really interesting is the cast of characters around the company. Many thanks to Steve for the links to the latest, updated stories on this topic.

https://www.lewrockwell.com/lrc-blog...nies-billions/

[Ronin Truth]

Just give 'em another billion or two.