Westinghouse Solar, CBD form Italian solar project JV
Aug 28, 2012 - US solar systems provider Westinghouse Solar (NASDAQ:WEST) said Tuesday it had formed with Australian green energy firm CBD Energy (ASX:CBD) a joint venture in Italy to design, engineer, procure and construct solar parks.
CBD Energy, which is in the process of merging with Westinghouse, has a project pipeline in Italy in which the US firm is to take a 25% stake for USD 1.5 million (EUR 1.2m). Westinghouse has an option to take up to 50% in the business for an additional investment of USD 1.5 million. It said it planned to secure the needed amount in an at-market equity capital financing.
The main purpose of the joint venture is to diversify the business of the two companies and fetch incremental earnings. "Following merger closing, we intend to pursue additional EPC opportunities in Europe and the US," said CBD managing director Gerry McGowan.
In June 2012 CBD wrapped up the first of a number of 5-MW solar parks in Italy. It has already negotiated the installation’s disposal for EUR 12.5 million (USD 15.7m) to a third-party off-taker. The latter is expected to buy five more 5-MW solar power plants that CBD expects to completed this October. The project sales are seen to start bringing earnings in the current quarter.