Spain's solar industry is in full decline

Spain's solar industry is in full decline

It is said that the lean dead camels had less than 20 billion euros in debt when compared to Ma Fei, and they overpowered a world-renowned green energy giant? Abengoa’s decline came quickly and abruptly. It would have been biased and narrow-minded if he had only found fault with him.

In fact, embarking on the bankruptcy of Abengoa, which is not returning, is an extreme example of Spanish companies and a microcosm of the country’s economic environment. Starting in the 1940s, Avengoa was a renewable energy industry that really made it taste a lot. The company did not hesitate to devote itself to green energy when Spain was “bumped”. The pen has another sum of money, but it eventually became a "crime" after another today.

As one of the 12 countries that joined the European Union’s single currency organization in 1999, Spain earned a lower interest rate by virtue of its member status. The country entered a period of economic prosperity around the year 2000, followed by “real estate gold rush”. It has also promoted unprecedented economic expansion. Spain was a solid and stable economy, ranking fourth in the euro zone.

In this environment, Spain’s banks began to ease the conditions for borrowing, which directly stimulated the enthusiasm of companies to invest in and accelerate their overseas expansion, including the continuous expansion of the business area of ​​Avengoa. From the transmission lines, biofuel factories to seawater desalination facilities, Abengoa is immersed in everything but the most favorite is renewable energy represented by solar energy.

Driven by the cheaper banks, plus the need to invest in capital-intensive projects, Abengoa’s borrowing scale is getting bigger and bigger, and with it, the reputation is getting louder and louder and the business is getting hotter and harder, but its However, the most important point was ignored - the debt growth rate has exceeded expectations.

By 2007, the economic bubble in Spain had burst, the unemployment rate had risen year by year, and then it had fallen into the "strange circle" of the debt crisis in the euro zone. The country's economic problems have become more acute. At that time, Abengoa remained in the cradle of “green” and continued to deploy green energy projects both at home and abroad. There was no sense of tension on the ice, and apparently he wouldn’t even consider getting increasingly heavy debts.

Until the Spanish energy reform in 2013, this became an important trigger to bring Abengoa to the guillotine. In that year, Spain’s executive government suddenly cut back on subsidies for renewable energy industries that had been in place for many years in order to curb public deficits. For a time, investors, developers and suppliers in the renewable energy industry all felt “overcast in the clouds”. The government braked on generous subsidies due to austerity measures, and the “crowbar” days began.

At that time, Spanish power giants, Iberdrola, a major provider of hydropower, wind power, and natural gas supplies, and large-scale wind energy maker Gamesa, all felt chilled and served as renewable energy project operators. The project construction and project implementer, Avengoa, was even more chilling. The cancellation of the subsidies led directly to a rise in their investment costs and debt. The accumulated backlog of debts had nothing to do.

In the following two years, Avengoa finally faced the fact that the debt was high and continued to build green power projects while trying to fill the loopholes. As the time shifts, it has already missed the best time to clear the debt. At present, the gains from this cup of cash are hard to save in the madness.

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