Solar Systems' technology sparks interest

Age
Friday 18/9/2009 Page: 1

A PROPOSAL to build the world's biggest solar energy station in Victoria may receive a lifeline after 40 companies expressed interest in buying Solar Systems, the company that went into administration last week. Solar Systems administrator Stephen Longley, of PricewaterliouseCoopers, told Business Day that he was "reasonably optimistic" the company would be sold. There was strong interest in its solar photovoltaic technology from local and overseas companies.

A meeting of creditors in Melbourne yesterday resolved to convene again next week, when a committee will decide whether to delay further discussion until mid-December. "The idea is that we will meet again when we have something to say and hopefully announce a sale," Mr Longley said. "We don't want to waste people's time and people's money when there is very limited money to achieve this sale."

Solar Systems, which was to build a 154-MW solar farm near Mildura, went into voluntary administration last week after failing to attract another investor for the $420 million project. The company went under despite securing funding from the federal and Victorian Governments, and global energy company China Light and Power.

"The company always knew that it needed further equity put into the business," Mr Longley said. "The tolerance level of existing investors had been reached in terns of putting in any further capital. "The shrinking of the capital markets meant the timing didn't work. I am not saying they were a victim of the credit crunch, I am saying that the timing of it was unfortunate for this business because investors went for safer investments."

Mr Longley said about 40 companies with an interest in buying Solar Systems had contacted him, and he had sent flyers to more than 100 others in the renewables sector. "You name any region and we have emailed parties there," he said. "We have a company here in Solar Systems that has world-leading technology and is seen as one of the best companies for a utility-scale solar energy station - I would be surprised if we didn't have a lot of interest in it."

Mr Longley said it was too early to say whether the proposed solar energy station could be saved. "Interested parties will have to sign a confidentiality agreement before they have access to a data room, but we are looking at getting indicative offers before we have a shortlist and then final offers by October 30." he said.