Czech Photon Energy plans expansion abroad in 2011 - report

(ADPnews) - Nov 8, 2010 - Czech Photon Energy (WAR:PHO) plans to focus on expansion abroad in 2011, expecting low profitability at home due to a planned new tax on solar power producers, news agency Polska Agencja Prasova reports, citing company officials.

The Czech government considers imposing a 26% retroactive tax on the income of solar power systems with installed capacity above 30 kW connected to the grid in 2009 and 2010 as a measure to control the increasing electricity prices in the country.

If the government passes the act, solar plant developers would demand compensations and start legal proceedings, and Photon would bring the matter to court as well, its president Michal Gartner told the agency.

The Czech integrated solar power developer expects that losses attributable to the planned tax would be partly offset by higher-than-expected results at its existing installations.

Photon plans to shift its business to other countries, mainly Italy and Germany. In Italy it would develop its own projects and seek engineering and procurement contracts (EPC), while in Germany it would install mostly rooftop solar systems. The company considers entering other markets as well, targeting mainly to sell its solar power technology.

In the Czech Republic, which is Photon's key market at present, it would be engaged only with rooftop installations with capacity under 30 kW, it said.

Photon expects to have 18 MW of total installed solar capacity in the Czech Republic and Slovakia by the end of the year.

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