Building the grid for the solar park in Scornicesti, Romania. Photo: Power Clouds
When it comes to providing energy, a Singapore-based company has its head in the clouds. And they’re hoping it will revolutionize the way energy systems are developed.
Power Clouds is building large-scale solar parks and commercial rooftop energy plants to harness power for remote regions of the world. Beginning with three solar parks in Scornicesti, Romania, the company put its first plant into operation in August, with the third plant scheduled to go into operation in December. Attilio Palumbo, project manager for Power Clouds, says they chose that region based on several factors.
“[We looked at] the country’s social and economic stability, geographical characteristics, weather conditions, the country’s economic support and the population’s energy demand,” he says. “We will soon officially announce the locations of the fourth and fifth plants that will be built.”
In addition to harnessing energy for the region, the company’s unique business model invites outside individuals to become a part of the solution. The solar panels for each project are purchased by outside companies or individuals, who buy a panel (or “cloud”) for $1,200 under a hire-purchase contract. The panel is installed in the solar park, and when the plant becomes operational, the purchaser receives a monthly check from Power Clouds, which essentially rents back the panel from the purchaser.
The agreement lasts for 20 years, and Palumbo claims that, during that time, they will receive back about 400 percent of their initial purchase price.
“The economic returns begin the moment the solar plant goes into operation,” he explains. “Over the first five years, people [recoup] the amount spent on the panel’s purchase, and continue to receive monthly returns for the next 15 years after that.”
He says the monthly revenue generated consists of a fixed fee plus a variable amount based on each plant’s actual energy production. Each solar park takes less than four months to complete, and he says panel purchasers for the inaugural solar park are already receiving financial returns.
Homepage photo credit: morgueFile/pedrojperez