SPI Solar (“SPI”) a leading vertically integrated photovoltaic (“PV”) solar developer and engineering, procurement and construction (“EPC”) services provider, announced that it has been awarded a contract by KDC Solar LLC (“KDC Solar”) to serve as the EPC contractor for the design and construction of a 9.7 megawatt fixed-ground-mount, distributed generation solar energy facility (SEF) which will be owned by a subsidiary of KDC Solar LLC and provide electricity for onsite consumption by a subsidiary of an international pharmaceutical company’s operations at their New Jersey corporate headquarters. The project is a direct result of the three-year agreement SPI, KDC Solar and LDK Solar (“LDK”) announced in June, 2011.
The agreement established SPI as the preferred EPC services provider to KDC for a minimum commitment by KDC Solar to offer 150 megawatts of SEF projects over 36 months for SPI’s consideration. The agreement also set as a goal for KDC Solar and SPI to potentially develop a total of 300 megawatts in SEF projects across New Jersey and New York. In addition, SPI and LDK agreed to provide construction financing and facilitate long-term financing, supported by LDK, of up to $750 million for projects.
For this first project, SPI Solar will build the SEF on land owned by KDC Solar that is contiguous to the pharmaceutical company’s New Jersey headquarters. Through a long-term power purchase agreement, the pharmaceutical company will buy the power generated by the SEF from KDC Solar at significantly lower electric rates on a long term basis. In addition to designing and building the facility, upon completion of construction SPI will also provide long-term operations and maintenance services for the facility, ensuring both continued SEF operations and optimal power production. The SEF will be powered exclusively by LDK Solar’s high-performance modules.
“This project is a perfect example of the KDC Solar, SPI Solar and LDK Solar alliance,” said Stephen Kircher, CEO of SPI Solar. “It represents precisely the type of projects we believed our alliance would yield when we announced our three-way agreement in June,” Mr. Kircher explained. “We look forward to breaking ground and beginning construction on this project as we continue to jointly pursue many other large-scale projects.”
“We are very happy to be working with SPI and LDK on this project ,” said Hal Kamine, CEO of KDC Solar, “This project is perfectly aligned with our focus on creating facilities to supply long-term, inexpensive solar electricity that yields a significant reduction in the cost-of-operation to our customers,” Mr. Kamine concluded.