German owners book high write-offs with Spanish Andasol 3 plant - report

Jul 3, 2013 - The Andasol 3 solar thermal power plant, based in southern Spain, has turned into a loss-causing project for its owners, German RWE (ETR:RWE), Rheinenergie and Stadtwerke Muenchen.

The biggest shareholder in the plant, Stadtwerke Muenchen, had to book write-offs of EUR 64 million (USD 83m), while Cologne-based Rheinenergie registered a loss of EUR 17 million, news agency Reuters reported on Tuesday.

RWE and the plant's constructor, Ferrostaal, have also announced significant write-offs in connection with the plant, which was brought to operation in 2011, Reuters said.

The write-offs are mainly due to the fact that the Spanish government had promised support for the plant but has later given up.

The German companies are now considering taking legal steps against the decision of the Spanish government, the news agency said.

The costs for the construction of Andasol 3, which has a capacity of 50 MW, came in at EUR 315 million. The plant is expected to be supplying up to 200,000 people with clean electricity.

Stadtwerke Muenchen holds a stake of 48.9% in Andasol 3.

(EUR 1.0 = USD 1.297)

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