A Victorian company that was set to develop one of the world’s largest solar power plans has been placed in administration, putting the company’s $420 million project in doubt.
Solar Systems, which is based in Melbourne, was developing what was to be the world’s largest solar power plant in the Victorian regional town of Mildura.
The company has attracted serious support, with the State and Federal Governments pledging $125 million of funding for the project.
Power company TRUenergy, which is owned by Hong Kong-based energy giant CLP, was also a big supporter of the company and invested $53 million in Solar Systems in 2008.
But last week CLP wrote the value of its investment down to zero, blaming its decision on Solar System’s inability to attract another big investor.
“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 told The Australian.
While the jobs of around 150 Solar Systems workers are now in doubt, administrator Stephen Longley of PricewaterhouseCoopers plans to keep the business and project running on a smaller scale as he seeks to find a way to restructure the business.
”We are assessing Solar Systems’ operational and financial position with a view to continuing operations on a reduced scale over the next three months in order to provide us with sufficient time to restructure and sell the business as a going concern,” he said in a statement.
A spokesperson for TRUenergy told SmartCompany this morning that the company is still keen to be involved in the project if a new investor could be found.
“We’re prepared to be a co-investor and we’d welcome the continuation of the Mildura solar project, but that’s really in the hands of the administrators.”
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
