GCL New Energy acquires 68.5 MW US pipeline

GCL New Energy clearly sees value in developing solar projects in the U.S. In two deals; the company has picked up 68.5 MW of projects. GCL has paid approximately US$4.93 million for the pipeline.

GCL will purchase 58.5 MW of project pipeline through its acquisition of the Wilson Project Companies, in the form of seven PV power plant projects. The additional 10 MW was acquired in the form of the Jackson Project Company, which is developing a 10 MW plant. Jackson SPA was purchased from Mount Olive LLC and Hiver Energy Limited.

All of the parks are located in North Carolina. The state has become a focal point for utility scale PV development, driven by its Renewable Energy Portfolio Standards; that enjoyed bipartisan political support when passed in 2007.

GCL will provide a 50% upfront payment for the projects, with a further 25% once an EPC is selected and moves forward with the project and the remaining 25% on project completion. The deals are pursuant on the developers securing reductions applicable grid connection feeds.

GCL New Energy will conduct "exclusive negotiations" with Mount Olive for the provision of EPC services for the 10 MW project. However, it remains to GCL’s sole discretion as to which company it selects to carry out the EPC works.