Biggest Solar Power Corporation On Verge of Bankruptcy

They bit off more than they could chew.  The sun may set on the biggest solar conglomerate machine on earth.  And it is still growing bigger even as the bubble popped some time ago.  Stock has fallen 99% over the last year and is trading at virtual penny stock levels this month.

 

World’s Largest Renewable Energy Firm May Go Bankrupt – Breitbart

 

Although the company’s share price hit a high of $30 in July, the stock has fluctuated since, settling on a price of $0.59 at noon on Tuesday. SunEdison, which has accumulated $11 billion in debt acquiring renewable energies projects, is recovering from from the massive drop their stock price took on Tuesday.

 

The massive drop was not the worse part of this, the real losses were last fall.

 

SunEdison’s TerraForm Global Acquires Solar Farm in Uruguay – Bloomberg

 

TerraForm Global bought the 26.4-megawatt Alto Cielo solar farm in Uruguay from Spanish developer Solarpack Corp. Tecnologica SL, it said in a filing Friday, after the close of regular trading in New York. It paid $35.4 million for the power plant, which began operations last month.
The acquisition comes as TerraForm Global seeks to avoid being swept into potential insolvency proceedings of its parent. SunEdison is swimming in debt and is facing possible technical defaults on at least $1.4 billion in loans and credit facilities because it has yet to file its 2015 annual report. TerraForm Global warned in a March 29 filing that “there is a substantial risk that SunEdison will soon seek bankruptcy protection.”

 

So, this plant began only last month?  And was sold…to a nearly bankrupt group?  This is very bad stuff.  The problem with solar energy is, it depends on government subsidies to survive when energy in general lost value in a huge way, note how gasoline prices are roughly half compared to two years ago.

 

Green Energy Bust in Germany and Will oil’s drop hurt renewable energy? – CNBC.com asks. Duh.  Of course.  U.S. Energy Secretary: Solar and wind energy now cost-competitive claimed our government last fall even as value of solar energy corporations began to collapse.

 

The fall in ALL energy values is hammering all holders and producers very hard, Saudi Arabia, for example, is facing economic ruin due to dropping values.  If oil was more expensive, solar would be more sensible.  But oil has fallen and taking down all others with it.  Will oil’s drop hurt renewable energy? ask a liberal organization, CNBC, a year and a half ago.

 

Now we know the answer.  And here is what the solar proponents dreamed up back then:

 

“Inevitably, there will be some impact because we think the high oil price is a key driver [for] renewable energy,” said Flora Chang, an energy analyst at Bernstein Research. But cheap oil will likely only delay some projects, not derail renewables’ advance, she said, sticking behind Bernstein’s November report giving a strongly positive outlook for the sector in Asia.

 

Wrong.

 


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6 Comments

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6 responses to “Biggest Solar Power Corporation On Verge of Bankruptcy

  1. Jim R

    The thing is, solar power doesn’t really make sense on that scale. They are trying to replace the big coal powered or nuclear plants that make gigawatts. This requires a ridiculous acreage of panels. And then it requires electronics to gather up all the generated power, and a way of saving the energy for nights and cloudy days, and of course maintenance and such — , …

    It makes a little more sense for the individual homeowner, where the routine of cleaning the panels can be another chore like mowing grass or shoveling snow. But then, it only makes sense to a homeowner if the excess power can be sold into the grid. We have discussed this here before.

    And finally, the grid operator can’t really use the power if it exceeds 10 or 15% of grid power. This is because the grid operator must also compensate for night, clouds, and so forth, and usually does so with conventional generators running on natural gas. To compensate with battery banks or pumped storage, etc., is quite quite expensive. Same thing goes for wind energy — it can only usefully contribute to baseload if the windmills are in a place that has extremely steady constant wind.

    One might naturally think the ‘carbon credit’ weenies would be happy to pay for the feed-in tariffs and the battery banks and stuff, but no. Carbon credits are just a license to steal money from the utility customers. They’ll need the money to fly to Rome for a conference or something. It will never be spent for any utility.

    As for the “biggest company” going broke, it was probably never anything but a Ponzi scheme anyway. Good riddance to them. Let ’em sell off the panels, at a deep discount, to homeowners.

  2. Jim R

    On the positive side, a nuclear bankruptcy leaves a bigger mess behind.

  3. John

    So Sun Eddison has a stock price, so I presume it is a public limited company? And it’s mature projects were / are to be transferred to one of two “public” “yeildcos”, owned by Sun Eddison? I don’t follow this. Are the projects to be off-loaded onto the public sector once the efficiency of the silicon panels goes into decline? A typically crap news report which generates more questions than answers.

  4. floridasandy

    not like they didn’t know there was a problem:

    2
    Print
    January 04, 2016 08:27 ET | Source: Andrews & Springer LLC

    WILMINGTON, Del., Jan. 04, 2016 (GLOBE NEWSWIRE) — Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, announced that a securities fraud class action lawsuit has been filed in the U.S. District Court, Northern District of California, Case No. 15-cv-04981, on behalf of investors of TerraForm Global, Inc. (NASDAQ:GLBL) (“TerraForm Global” or the “Company”) that purchased TerraForm securities pursuant or traceable to the Company’s initial public offering on July 31, 2015 (“IPO”).

  5. nomial

    Of course the best way to collect sunshine is forests, stop cutting them down without replanting

  6. Maddie's Mom

    Pure fantasy.

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