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U.S. energy market attracts Spaniards

Gargi Chakrabarty

Published February 22, 2008 at 12:05 a.m.

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Spain's Abengoa Solar, with U.S. headquarters in Lakewood, says its plans to build the world's largest solar plant in Arizona "will help usher in a new era of large, clean and efficient" facilities.

Photo by Photo Illustration Courtesy Abengoa

Spain's Abengoa Solar, with U.S. headquarters in Lakewood, says its plans to build the world's largest solar plant in Arizona "will help usher in a new era of large, clean and efficient" facilities.

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Strums of a guitar and mandolin filled pauses in conversations, as did glasses of wine and plates of hors d'oeuvres.

Businessmen in dark suits and crisp shirts chatted up Colorado's wind, solar and sports prowess with people from Madrid, Seville and Barcelona, mindful that the visiting Spanish delegation should have a good time, even in the midst of a mundane junket.

"The name of our state, Colorado, has its origin in the Spanish language," deadpanned Joe Blake, CEO and president of the Metro Denver Chamber of Commerce, in his welcome speech last Wednesday. "If not, who knows? We could have been named Lone Tree or Dead Wood."

The mood at the reception for the delegation at the Colorado History Museum was jovial. But the motive was clear: Colorado wants a chunk of the billions of dollars that Spanish companies plan to spend in the United States building solar and wind facilities during the next few years.

Spanish companies have invested $24 billion in the United States during the past few years, including $7 billion in the nascent renewable-energy market. They are looking to spend billions, anticipating the market will grow by leaps and bounds in the coming years.

On Thursday, Abengoa Solar, whose U.S. headquarters are in Lakewood, announced it will build, own and operate the world's largest solar plant in Arizona.

The 280-megawatt plant, scheduled to go online by 2011, is 70 miles southwest of Phoenix. It will sell the electricity produced to utility Arizona Public Service Co. throughout 30 years for a total revenue of around $4 billion, bringing more than $1 billion in economic benefits to the state.

"This project will help usher in a new era of large, clean and efficient solar power plants," said Santiago Seage, CEO of Abengoa Solar.

Abengoa, based in Seville, Spain, is focused on grabbing a piece of Colorado's growing renewable-energy industry, as is competitor Iberdrola, another Spanish major.

"There is a perception in Spain that the United States is changing in a dramatic way," said Eduardo Aguirre, U.S. ambassador to Spain, who was accompanying the visiting delegation.

Aguirre said the delegation chose to visit only one state after landing in Washington, D.C. - Colorado.

Ernesto Macias of Isofoton said the company, one of the largest solar photovoltaic manufacturers in Europe, is scouting to build two manufacturing plants in the United States.

The company has an office in Washington, D.C.

The Spanish officials visited the National Renewable Energy Laboratory in Golden and Colorado State University in Fort Collins.

The Spanish executives visited CSU spinoffs AVA Solar and Solix, a biofuels company working to make biodiesel from algae, and stopped at New Belgium Brewery Co., maker of Fat Tire Amber Ale. The brewery captures methane from its waste to produce energy and also is working with Solix to supply waste carbon dioxide to grow algae.

Colorado's zeal may pay off in the long run, but the Spanish investors are worried about the near term. A federal law that allows solar-project owners to pocket 30 percent of the cost in investment tax credits is set to expire at the end of this year.

If that happens, the solar industry would expect to see a net loss of 40,000 jobs and $8 billion in missed economic investment, said Rhone Resch, president of the Solar Energy Industries Association.

"Solar is an economic engine in the country that pays good-paying, high-quality jobs in all 50 states," Resch said. "However, Congress has not taken active measures to ensure that we grow the solar market, so we are losing jobs to Germany, Spain, Japan and China. We are asking Congress to extend the investment tax credit for another eight years."

chakrabartyg@RockyMountain News.com or 303-954-2976

Big bucks

* Investment: Spanish companies have invested $24 billion in the U.S., including $7 billion in the renewable-energy industry.

* Abengoa Solar: Based in Seville, Spain, with U.S. headquarters in Lakewood, the company plans to build the world's largest solar plant in Arizona, expected to bring $1 billion in economic benefits to the state.