There are technical, bureaucratic, and commercial issues that feed into the judgement of solar project as bankable or not. With the markets of Jordan, Kuwait, Saudi Arabia and Morocco differing greatly, land laws as one example also have a major influence on the viability of plants. What’s more CSP’s high costs and early steps in storage mean that for some financiers it is seen as too much of a risk. The type of investor also influences the amount of risk or return they expect.

Reducing system cost is an essential part of the drive towards bankability. However, cost reduction may also come from new innovation in materials or processes although the first commercial applications of this may be higher risk. In the MENA region these issues are compounded by higher operating costs due to the higher prices of water, the need for more frequent cleaning being two major cost drivers.

With plants set to have lifetimes of 20 years and longer, building accurate performance models for the lifetime of a plant can increase investor confidence in expected return. Building in operations and maintenance costs as accurately as possible can provide the guarantee of high yield and a more transparent budget for investors. Transparency and clearly evidenced projections create trust and confidence over unknowns.

At MENASOL 2014 May 6-7 Dubai, the investors involved in financing CSP plants will be attending to meet with developers and EPC companies submitting bids and projects for tender. Financiers attending include Mizhuo Bank, KfW, KfW-IPEX, the IFC, the World Bank and Gulf Investment Corporation to speak about ensuring CSP projects are viewed as attractive risks.

For more information about the agenda topics at MENASOL, click here:

http://www.csptoday.com/menasol/

Or contact Sarah Kingham on sarah@csptoday.com