Prime Sun Power Inks Co-Development and Acquisition Pact for 100 Megawatt Photovoltaic Power Plants Project

Posted on: Sun, 17 Oct 2010 02:12:54 EDT


Oct 16, 2010 Prime Sun Power Inc. announced that it has entered into a Master Acquisition Agreement with DFD Select Group Ltd. and EnWay SAS, a Financial Advisory Company specializing in capital preservation and EnWay an Operational Coordinator in the renewable energy industry, to co-develop up to 100 Megawatts (MW) of photovoltaic (PV) plants in France in 2011.
The Company said that under the agreement, PSP and DFD/EnWay will jointly develop the 100Mw power plants until Grid connection. PSP plans to acquire and operate the Grid connected power plants as a long term company asset. Both parties agree that, where possible, some of the modules for the PV-Plants will be provided by strategic partners or suppliers pre-selected by PSP.
According to a release, the 100 MW power plants will be allocated on land identified by DFD/EnWay in the region of "Arles" and "Castres" in the South of France. Engineering, procurement, construction and installation (EPCI) contracting and long term financing will be provided by French institutions currently in discussions with PSP.
"The French market provides attractive energy output levels as well as rewarding investment returns. DFD/EnWay have substantial knowledge about the licensing procedures and have excellent relationships with prime landowners and regional authorities. The projects' indicative profitability and key financials are promising. In addition to the Italian market, this step accelerates the projected growth of PSP as a utility-scale PV power plant developer and operator" said Olivier de Vergnies, CEO of PSP.
"PSP has an impressive business model and experienced management. We are pleased to participate in their vision and jointly establish a major project portfolio in France "said David Tucker, Chief Executive Officer of DFD and Jean-Pierre Philippe, Chief Executive Officer of EnWay.
PSP noted that it is in the process of appointing a European investment bank with successful global track record in clean energy sector for the equity and capital raising of up to EUR160 Million required for the development, construction and installation of 225Mw of PV-Power Plants which PSP has in its pipeline in Italy, France and Greece. PSP has exchanged communications with the bank which has indicated keen interest to accept the mandate. PSP expects to disclose the details of the financing upon completion of the due diligence related to closing the final agreement. The bank considers PSP projects pipeline interesting for its client base which includes financial investors (such as infrastructure funds focused on renewable), institutional investors (e.g. insurance companies), and strategic investors looking to secure downstream pipeline (such as module manufacturers), utilities and IPPs as well as industrial companies interested in diversifying in the renewable space.
PSP has also received a term sheet for the financing of its solar power plant projects in Italy on a leasing basis providing 80 percent of the investment cost.
DFD Select Group Limited was created in 1996 and has been acting as an Investment Manager.
EnWay is a development company, which coordinates financial, industrial, and operational partners. It has a portfolio of both French and international projects.
PSP is positioning itself as a clean energy utility company with an emphasis on the development, construction and operation of its own and third party utility-scale photovoltaic power plants. The Company is focusing on photovoltaic solar power generation in Europe, particularly in Italy, Greece and Turkey.
More information:
www.primesunpower.com