A California solar company in which Abu Dhabi had invested US$30 million (Dh110.1m) is filing for bankruptcy protection, the latest casualty of increased competition in the renewable energy sector.
Masdar, the emirate's clean energy company, owns a 2.36 per cent stake of Solyndra, the third US solar company to seek bankruptcy protection in a month, citing competition from China.
The story of Solyndra illustrates the uncertainty that remains in the renewable sector despite advances in technology and financial backing from governments.
Solyndra was the darling of American clean energy policy, receiving $527m in loans and a visit from Barack Obama, the US president. It made a unique cylindrical solar panel that could capture the sun's rays from any angle.
Between 2007 and 2009, Masdar invested $30m in Solyndra through its venture capital vehicle, the Masdar Clean Tech Fund.
But the support was not enough to counter competition from Chinese manufacturers that have benefited from even more extensive government subsidies. Countries from Spain to Germany have also cut back on subsidies on solar power generation, erasing some demand for solar panels.
"The markets are oversupplied," Martin Simonek, a solar analyst at Bloomberg New Energy Finance, wrote in a recent report.
"Producers are preparing for a painful consolidation that could see several players exit the solar industry."
Solyndra plans to file for Chapter 11 this week and has already laid off 1,000 employees.
If it decides to liquidate its assets, Masdar and other private investors would be among the first in line to recoup their investment, according to Bloomberg News.
"Masdar regrets the news that the board of Solyndra decided last week to close down operations and evaluate other options," Masdar said in a statement yesterday. "Our thoughts are with the company's employees and their families."
Masdar Capital, the venture capital unit, invests about $540m through two funds and has hinted that a third fund could be established under the right market conditions.
It targets investments of $15m to $40m each, the most recent in eCullet, a glass-processing company in Palo Alto, California. In July, Alex O'Cinneide, the director of Masdar Capital's venture capital unit and a member of Solyndra's board of directors, was optimistic about its investment prospects.
"We think the market is improving in terms of the quality of companies we're seeing," he said at a briefing in Abu Dhabi. "We're [in] the business of making a profit."
ayee@thenational.ae
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Notable Yas events in 2017/18
October 13-14 KartZone (complimentary trials)
December 14-16 The Gulf 12 Hours Endurance race
March 5 Yas Marina Circuit Karting Enduro event
March 8-9 UAE Rotax Max Challenge
MATCH INFO
FA Cup fifth round
Chelsea v Manchester United, Monday, 11.30pm (UAE), BeIN Sports
Red Joan
Director: Trevor Nunn
Starring: Judi Dench, Sophie Cookson, Tereza Srbova
Rating: 3/5 stars
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Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Youth YouTuber Programme
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- Master on-camera presence and advanced script writing
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