CBD Energy Limited, a diversified clean energy company and leading global provider of solar systems, today announced an agreement with Environmental Engineering Group Thailand (EEG) to construct a 64MW solar park with a projected development cost of approximately $112,000,000. The project is supported by a 25-year power purchase agreement with the Thai Provincial Electricity Authority.
CBDE estimates it will earn pre-tax profit of $6,080,000 from the project’s construction, which is expected to be pre sold to a Singapore-based financial institution. These estimated pre-tax profits are in line with those derived from a previous project completed by CBDE in Thailand. CBDE anticipates these earnings will be recognized during the 2015 calendar year. CBDE attributes finalization of the contract to its exclusive worldwide license to market its residential and commercial solar under the Westinghouse Solar name, the 125-year heritage of the Westinghouse brand, CBDE’s status as a NASDAQ-listed company and its extensive history of developing quality solar projects worldwide.
CBDE has experience in Thailand, having previously successfully developed and operated a $25,000,000 solar farm in Chonbun province near Pattaya. Thailand has increased its commitment to solar energy investment by 50 percent, pledging to meet 25 percent of the country’s total energy demand from renewable sources. The country ranks among a handful of emerging solar markets that are gaining major momentum in the solar industry.
“As some traditional long-established markets slow down, CBD Energy’s strategy of diversification and exposure to multiple markets is realizing significant opportunity for CBDE due to our world-wide capability,” said CBD Energy Executive Chairman Gerry McGowan.
Mr. McGowan continued, “The successful conclusion of this contract is an important development for CBDE. These projects require full use of our international experience and engineering and operational capability. The value of having the Westinghouse Solar brand cannot be underestimated when evaluating the factors that enabled CBDE to win this contract. CBDE is continuing to develop our relationship with EEG in order to develop our pipeline of projects in the South East Asian market.”
Project Overview
| Solar projects size |
: |
64 megawatts |
| Production |
: |
86,400 megawatt hours per year |
| Number of homes it can power |
: |
17,280 |
| Expected time to install |
: |
10 months |
| Number of solar modules |
: |
256,000 |
| Square feet of installation |
: |
4,364,809 |
| Approximate cost of installation |
: |
US$112,000,000 |