SunVault Energy Inc (OTCBB:SVLT) said yesterday it had agreed to buy 100% of the
1.5-MW Gregos Peloponnisoy solar park in the northern Greek municipality of
Herso for about EUR 4.3 million (USD 5.9m).
The US green energy firm
signed a deal in October 2013 to acquire 80% of two Greek solar projects with a
combined capacity of 2 MW. However, it eventually determined it would be better
to take full control of the bigger solar park than to have 80% interest in two
separate schemes.
As part of the new deal, SunVault will take over the
special purpose vehicle (SPV) that owns the particular project from BCI
Renewables. The assumed project financing debt will be deducted from the total
purchase price, which will be paid in stages. The transaction is subject to
certain approvals.
The Gregos Peloponnisoy solar farm has a 20-year power
purchase agreement (PPA) with the local government-controlled energy utility. It
is selling its output at EUR 0.37283 per kWh. The plant generates annual gross
revenues of over EUR 800,000, according to BCI.
SunVault plans to use the
revenue stream, estimated at about USD 22 million over the term of the PPA, to
help finance the commercialisation of its technology portfolio.