SPI Solar (SOPW:OTCBB), a vertically integrated PV solar developer, announced that it has entered into an agreement to acquire certain assets relating to current SPI solar PV projects in Hawaii. SPI will acquire Hawaiian Power, LLC’s equity interests and debt related to an SPI and Hawaiian Power joint venture to develop and operate solar PV projects in Hawaii.
As a result of the transaction, SPI will own a 100% interest in an entity that currently has approximately 15 MW under development in Hawaii. The aggregate purchase price for the assets is $3.95 million, consisting of 3 million SPI Solar shares of common stock valued at $1.15 per share, subject to adjustment, and $0.5 million in cash, with closing expected this month.
SPI also announced that it has begun providing engineering, procurement, and construction services on the first MW of a series of projects on Maui. SPI’s provision of EPC services on these projects, which comprise four 0.25 MW projects on Maui, together total approximately 1 MW of nameplate capacity. The estimated completion date for these projects is December 2014.
In addition, SPI has also acquired the development rights to an additional 2.5 MW of projects near Kona, Hawaii. With SPI’s approximately 15 MW under current development in Hawaii, and with this investment, SPI’s total solar project interests in the Hawaii PV market will now add up to about 17.5 MW, all of which are expected to be completed throughout the remainder of 2014 and 2015.
“This announcement underscores SPI’s commitment to growing our presence in the important US solar market,” said Xiaofeng Peng, Chairman of SPI. “Hawaii, in particular, is among the country’s most attractive markets for PV investment, and we are confident these developments will result in meaningful returns for SPI.”
Pacific Business News also reports that SPI plans to expand its Hawaii operations by opening an office there by the end of this year. Stephen Kircher, global chief strategy officer for SPI Solar, told Pacific Business News that the company is bullish on the solar market in Hawaii, which has a huge need for solar energy.