Lloyds May Finance Solar Power Projects in Australia.

Jan. 24 (Bloomberg) -- Lloyds Banking Group Plc
said it plans to finance Australian renewable
energy projects, targeting ventures competing
for funds from the government ’s A$1.5 billion
($1.5 billion) solar program.
The London-based bank may provide loans to
Australian solar or wind power developments, Ed
Wilson, head of renewable energy for Lloyds,
said in an interview today in Sydney, declining to
identify any projects it is evaluating.
“We’re looking to have a more international flavor
and the Solar Flagships program gives us a good
opportunity to look at the prospects down there, ”
said Wilson, whose group has focused mainly on
U.K. wind energy ventures.
BP Plc, CLP Holdings Ltd. unit TRUenergy
Holdings Pty, Suntech Power Holdings Co. and
AGL Energy Ltd. are among companies vying for
government funds to develop solar power plants.
Australia, which burns coal for more than 80
percent of its electricity, has set a target of
deriving 20 percent of its power from renewable
energy by 2020.
“Australia has been regarded as an inconsistent
investment environment -- it has a great natural
resource, and yet the economic drivers have not
been encouraging investment in renewable
energy technology, ” Wilson said.
Market Doubts
Even so, “Australia appears to be committed to
renewable energy and attracting investment into
the industry, ” he said.
Acciona SA of Spain pulled out of the Solar
Flagships program in December, saying
“ uncertainty in the energy markets in Australia”
and the lack of an agreement to buy power from
its proposed venture were among factors making
it difficult to forecast profits for the project.
The European Investment Bank in October
approved 126 million pounds ($201 million) of
loans for U.K. onshore wind projects under a
program with Lloyds, BNP Paribas Fortis and the
Royal Bank of Scotland Group Plc.
In July, Lloyds and BNP Paribas said they had
provided a 32 million pound lending package to a
unit of Infinis Plc for a wind farm in Scotland.


Source: Http://www.businessweek.com/news/2011-01-24/lloyds-may-finance-solar-power-projects-in-australia.html