GE’s commitment to alternative energy ventures has been furthered by the announcement of an investment and licensing contract with eSolar, a privately held solar-thermal power developer, which will enable the company to offer Integrated Solar Combined Cycle (ISCC) technology to customers across the globe.

The firm has agreed a minority stake in eSolar, a California-based provider of next-generation, tower-based concentrating solar thermal technology.

Under the agreement, GE will license and incorporate eSolar technology into its offers of cost-effective ISCC and standalone solar thermal power plants. The companies expect the transaction to be finalised within the month.

“When we look at the long-term future of power generation, we see the importance of integrating natural gas and renewable energy sources in new and innovative ways to provide energy that is cleaner, more cost effective and more reliable,” said Paul Browning president and CEO, GE Energy thermal products.

“Our investment in eSolar is another step in our journey to transform the energy industry. As a part of this transaction, GE is becoming  an investor in the technology as well as the primary channel to the power industry through the license agreement.”

eSolar’s technology will be combined with GE’s FlexEfficiency 50 Combined Cycle technology to create a highly efficient and reliable ISCC plant.

“FlexEfficiency 50 can reach more than 61% thermal efficiency. With the eSolar power tower add-on, an ISCC plant provides the capability to achieve better than 70% fuel efficiency, while providing reliable power,” commented Browning.

The “Green Gold Rush”

Global investment in renewable energies has surged in the past few years as conventional fuel prices rise and their environmental impact is highlighted.

Leasing and finance companies have recognised the opportunity here, especially as attractive incentives such as feed-in tariffs (FIT) promise lucrative bonuses to those with the technological and financial strength to overcome the initial costs.

The use of Power Purchase Agreements (PPA) and other leasing agreements to finance residential and commercial solar power installations has therefore also increased significantly.

In these PPAs, companies such as GE Capital or Siemens Financial Services will own and install the solar equipment, building it on the customer’s property. The project benefits the client through generating electricity savings and meeting sustainability goals, while the company gains the financial bonuses. The opportunities that the renewable energy field holds for leasing companies has also been highlighted by Max Moi of UniCredit Leasing: “In the last few years, renewable energy has become one of the fastest growing segments for the leasing industry.”

“We expect that the demand for financing solar panels and wind turbines will also be an attractive investment for the leasing industry in the coming years.” (See AFI May 25).