SunVault Energy (SunVault) announced that it has received board approval to enter into an Assignment and Amendatory Agreement to acquire an 80% interest in two affiliates of BCI Renewables that are special purpose vehicles (SPVs) that own two solar parks in Greece.
The purchase price relating to the 80% equity stake in the SPVs is approximately €4.9m less assumed project financing debt and subject to other adjustments. The transaction is subject to completion of final due diligence and successful acquisition financing. According to BCI Renewables, the two solar projects have combined annual gross revenue exceeding $1.2m that is derived from existing power purchase agreements (PPAs). This represents an aggregate of $24m in revenue over the term of the existing PPAs.
SunVault expects the revenue stream derived from the acquisition of the SPVs to facilitate a portion of the capital necessary to permit concentration on commercializing its technology portfolio.
BCI Renewable’s President Dimitris Karagoules states, "This transaction represents a portion of a portfolio of projects built by BCI. These projects are fully operational and are generating and collecting their contracted revenues. Both projects have 20-year contracts for the sale of the power they produce.
The first solar park, owned by Photovoltaika Chersou Ltd, is located in the municipality of Herso in Northern Greece and is 1.5MW in size. The project has a PPA with the local government controlled energy utility securing the sale of total energy produced from this solar park for a period of 20 years at a rate of €0.37283/kWh. The second solar park, owned by Ellinika Latomeia Photovoltaika AE, is located at the municipality of Lamia, in central Greece and is 0.5MW in size. The project has a PPA with the local government controlled energy utility for a period of 20 years and began generating revenue on July 31, 2013 at a rate of €0.29208/kWh."
Since its inception in 2000, BCI Renewables is one of the first and most successful companies participating in the Greece renewable energy market. BCI has constructed an additional eleven solar projects in conjunction with 25MW of wind power in Greece and is an ISO 9001:2008 certified EPC contactor for PV projects.
"SunVault continues to believe that it must own and operate energy generation and storage assets long-term so as to facilitate lowest-cost energy access in many regions around the world," states John Crawford, President and CEO of SunVault Energy Inc. "As BCI Renewables has been in the forefront of the Greek renewable energy market for an extend period of time, SunVault’s potential alignment and long-term agreement is anticipated to be a positive first step towards acquiring the necessary financial stability required to build-out our revenue platform around the globe."
SunVault will continue to seek out additional acquisition opportunities as they fit into the company’s mandate and growth plans. The company desires to produce on-going revenues that will support its efforts to develop and utilize its PolyCell energy storage, All-in-One and Vertical Solar Appliance technology platforms within a real world operating environment.