A solar plant in Alamosa built by Cogentrix LLC is up and providing electricity to Xcel Energy — but the closure of the factory producing the plant's solar panels has raised questions about its future.
The 30-megwatt plant, estimated to cost between $140 million and $150 million, received a $90.6 million federal loan guarantee from the Department of Energy.
Cogentrix is owned by Goldman Sachs, the New York-based investment bank.
Amonix, the maker of the concentrating photovoltaic panels used at the Cogentrix plant, announced Thursday it closed its 150-megawatt Nevada factory as part of restructuringto "parallel changing market conditions." It also has a research laboratory in Torrance, Calif.
Lower demand for the high-tech solar panels, which use lenses to concentrate the sun's rays and boost panel output, led to the closure, Amonix said.
"Whether Amonix is around or not, the components are being manufactured by others, and we can go and secure them ourselves," said Jef Freeman, spokesman for Charlotte, N.C.-based Cogentrix.
If Cogentrix has stocked up on equipment, as some plants do, the loss of Amonix "wouldn't be the end of the world," said MJ Shiao, an analyst with GTM Research, a Boston consulting firm.
"Some of the components came from a contract manufacturer, so Amonix isn't the only one with knowledge of the technology," Shiao said. This method may be more expensive, he said.
Cogentrix has a 20-year contract to sell electricity to Xcel at an undisclosed rate. Xcel did not return a call for comment.
If operating costs rise, it could pinch Cogentrix's profit margins and put the project at risk, said Eric Wesoff, editor of Greentech Media, a website that covers the industry.
Cogentrix's Freeman said: "We felt we've built into the contract what we need to anticipate these kinds of events."
Amonix said that "based on intense competition, the challenging solar-energy equipment pricing environment and lower-than-anticipated demand," it was closing its plant in Las Vegas.
Under pressure from Chinese imports, the price of traditional solar panels has fallen more than 50 percent in the last year and pushed several American solar panel makers, including Loveland-based Abound Solar, into bankruptcy.
Abound had received a $400 million federal loan guarantee, from the same Department of Energy program as Cogentrix, and had spent $68 million of it. Solyndra, a California solar-panel maker, received a $535 million loan guarantee and spent all of it.
Source: http://business-news.thestreet.com/denver-post/story/colorado-solar-plant-may-be-affected-closure-panel-factory-0/1
The 30-megwatt plant, estimated to cost between $140 million and $150 million, received a $90.6 million federal loan guarantee from the Department of Energy.
Cogentrix is owned by Goldman Sachs, the New York-based investment bank.
Amonix, the maker of the concentrating photovoltaic panels used at the Cogentrix plant, announced Thursday it closed its 150-megawatt Nevada factory as part of restructuringto "parallel changing market conditions." It also has a research laboratory in Torrance, Calif.
Lower demand for the high-tech solar panels, which use lenses to concentrate the sun's rays and boost panel output, led to the closure, Amonix said.
"Whether Amonix is around or not, the components are being manufactured by others, and we can go and secure them ourselves," said Jef Freeman, spokesman for Charlotte, N.C.-based Cogentrix.
If Cogentrix has stocked up on equipment, as some plants do, the loss of Amonix "wouldn't be the end of the world," said MJ Shiao, an analyst with GTM Research, a Boston consulting firm.
"Some of the components came from a contract manufacturer, so Amonix isn't the only one with knowledge of the technology," Shiao said. This method may be more expensive, he said.
Cogentrix has a 20-year contract to sell electricity to Xcel at an undisclosed rate. Xcel did not return a call for comment.
If operating costs rise, it could pinch Cogentrix's profit margins and put the project at risk, said Eric Wesoff, editor of Greentech Media, a website that covers the industry.
Cogentrix's Freeman said: "We felt we've built into the contract what we need to anticipate these kinds of events."
Amonix said that "based on intense competition, the challenging solar-energy equipment pricing environment and lower-than-anticipated demand," it was closing its plant in Las Vegas.
Under pressure from Chinese imports, the price of traditional solar panels has fallen more than 50 percent in the last year and pushed several American solar panel makers, including Loveland-based Abound Solar, into bankruptcy.
Abound had received a $400 million federal loan guarantee, from the same Department of Energy program as Cogentrix, and had spent $68 million of it. Solyndra, a California solar-panel maker, received a $535 million loan guarantee and spent all of it.
Source: http://business-news.thestreet.com/denver-post/story/colorado-solar-plant-may-be-affected-closure-panel-factory-0/1
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