SPI Solar is a leading vertically integrated photovoltaic (“PV”) solar developer. In addition they are also an engineering, procurement and construction (“EPC”) services provider. For they and its majority shareholder, LDK Solar (“LDK”) are most notably going big. I mean they have entered into an agreement with “KDC Solar”. All to basically manage a significant portion of its portfolio. I mean of solar energy facility (“SEF”) projects in New Jersey and New York.
Funding for 150 MW Solar
The 3-year agreement establishes a minimum commitment. That’s for offering 150 megawatts of projects. All for SPI’s consideration. In addition, it sets as a goal for KDC Solar and SPI. That’s to potentially develop a total of 300 megawatts. All in SEF projects. That’s across New Jersey and New York.
History of the Deal
In December 2010, SPI announced it had been selected to build a 5-megawatt SEF. Located at the White Rose Foods facility. For it’s located in Carteret, New Jersey. As well, KDC Solar is the Managing Member of this project. Following the close of this transaction, SPI and KDC Solar began. I mean vegan discussing a broader preferred provider arrangement. One which led to this agreement. According to KDC Solar, its current pipeline in the New Jersey market. For it already exceeds 150 megawatts.
300 MW potential
So if fully developed, this pipeline alone. For it is expected to generate approximately $600 million of new EPC and O&M business for SPI. That’s over the 3-year term of the agreement.
SPI Solar (OTCBB: SOPW) has announced the successful closure of a transaction with KDC Solar Credit LS LLC. It’s an affiliate of KDC Solar LLC. All for the purchase of approximately $42 million in solar. Specially, I mean high-quality LDK solar modules.
3 Year Commitment
This purchase is part of a three-year agreement between LDK and KDC Solar. All in which LDK will serve as KDC Solar’s preferred provider. That’s of engineering, procurement and construction (EPC) services. Also for the operations and maintenance (O&M) services. That’s for a significant portion of KDC Solar’s portfolio. I mean SPI’s solar energy facility (SEF) projects.
Xiaofeng Peng, LDK’s Chairman and CEO, expressed his excitement with the results of this agreement. SPI Solar specializes in turnkey world-class photovoltaic solar energy facilities. That’s for its business, government, and utility customers. Thereby assisting with project development. Also financing, and post-construction asset management.
Finally, the LDK modules purchased in this transaction are also to be used for various KDC Solar projects. All in New Jersey.
As the Northeast market continues to develop, and KDC Solar pursues additional pipeline opportunities in the region. I mean up to 300 megawatts of projects could come to fruition. All under the agreement.
KDC Solar has approximately 18 megawatts of SEFs under construction at present and is supported by an allocation of $225 million in equity from Diamond Castle Holdings, a New York-based private equity fund with more than $1.8 billion of committed capital under management.
Anothet 9.7 MW Project
to serve as the contractor for the design and construction of a 9.7 megawatt fixed-ground-mount. Talk about a distributed generation solar energy facility (SEF). This SEF, which will be owned by a KDC Solar subsidiary. For it will supply electricity to a global pharmaceutical company’s New Jersey corporate headquarters. All for their operations. This assignment was a consequence of the three-year agreement between SPI, KDC Solar and LDK Solar (LDK). This deal was revealed in June 2011.
In addition, the agreement made SPI the favored EPC services provider to KDC. All with a minimum commitment from KDC Solar to offer 150 megawatts of SEF projects over 36 months for SPI’s consideration. The agreement also aimed for KDC Solar and SPI to win.
“This agreement is a perfect blend of talent, skill sets and opportunity,” said Stephen Kircher, CEO of SPI.