Demise of Luz: A case study
On November 25, 1991, Luz International Ltd. and four subsidiaries filed for bankruptcy. Luz International and subsidiaries Luz Development and Finance Corporation and Luz Construction Inc. filed for liquidation of the company's assets under Chapter 7, while Luz Partnership Management Inc. and Luz Engineering Corporation filed under Chapter 11, which permits reorganization of the businesses to assure continued operation of the nine existing plants. These filings signal the likely end of the large-scale solar-thermal electric industry for the foreseeable future. The failure of the world's largest solar electric company - the producer of over 95% of the world's solar electricity - was not due to technological or business judgement failures, but rather to failures of governmental and regulatory bodies to recognize the economic and environmental benefits of solar-thermal electric generating plants. Until these institutionalized obstacles are overcome, there will be little incentive for investors to put their money into solar electricity. The sequence of events from the founding of the company until its demise is recounted.
- OSTI ID:
- 7085619
- Journal Information:
- Solar Today; (United States), Vol. 6:1
- Country of Publication:
- United States
- Language:
- English
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POLICY AND ECONOMY
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SOLAR THERMAL POWER PLANTS
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GOVERNMENT POLICIES
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299000* - Energy Planning & Policy- Unconventional Sources & Power Generation