All projects were constructed and put into operation as planned by the due date, including a 10 MWp project on a former converted military area in Jüterbog, Brandenburg. The S.A.G. Solarstrom Group is thus substantiating its goal of achieving an installation volume of over 100 MWp for the whole of 2012.
"Even though the market environment has remained very challenging, we still consider our planned sales goal for the entire year to be realistic", says Dr. Karl Kuhlmann, CEO of S.A.G. Solarstrom AG.
6.2 MWp was implemented in the business area Partner Sales and altogether 28.8 MWp in the business area Project Planning and Plant Construction, 2.1 MWp of which was in roof-top projects in Italy, 2 MWp in a ground-mounted project in Spain and 24.7 MWp in Germany. Almost 15.2 MWp of the projects implemented in Germany are in converted areas in Brandenburg, Mecklenburg-Vorpommern, Saxony, Saxony-Anhalt and Thuringia.
For converted areas which were already in the process of respective approval procedures before February 24, 2012, a transition period applied under the Renewable Energy Act up to September 30. Systems that were put into operation by this date were to receive 15.95 Eurocents per kWh for the electricity they produced.
The largest individual project to be implemented in Q3 is a 10 MWp system in Jüterbog, Brandenburg, in an area formerly used for military purposes. The system will produce around 9,700 MWh per year and will thus, in terms of figures, be able to supply around 2,400 four-person households. At the same time, the system will save over 6,600 tons of CO2 in electricity production.
"The industry continues to experience a very difficult phase of consolidation. We can see that from our Partner Sales. Some drastic cuts in the feed-in tariff in Germany, as well as in other European countries, have led to a considerable increase in market uncertainty", explains Dr. Karl Kuhlmann. As a result of the decline in system prices, a higher percentage of projects needs to be implemented in order to achieve designated sales volumes. In addition, the banking and financial crisis continues to impede the financing of photovoltaic projects, particularly in Southern Europe.
This difficulty is compounded by the fact that second and third-tier international module manufacturers have increasingly thrust their way on to the distribution market in Germany, in some cases with questionable product quality and have thus further intensified competition. "For investors, this is a risk that cannot be underestimated", says Kuhlmann, "because these systems will never achieve the forecast yield". However, despite the price pressure, S.A.G. Solarstrom AG will not accept any compromises in the quality of the components used.
"Although we were once again able to achieve a positive operating result in Q3, as planned, we will continue to consistently implement our cost reduction program in order to prepare the Group, from a position of strength, for the continued difficult market situation which can be foreseen for the next few months", says the CEO.
"As the ongoing discussions on the Renewable Energy Act levy show, we need to reckon with the fact that the Renewable Energy Act in its current form will have a half-life of less than 12 months. It is our task to lead the Group safely and solidly through the transition phase, from a supported market to a competition-oriented market in which photovoltaic power – and I am convinced of this – will demonstrate its advantages over conventional energy sources".
