CBD Energy Limited, a diversified clean energy company, has confirmed that it secured the rights to develop 1.25MWp of rooftop solar installations at 22 schools located throughout the UK. This is the second of a portfolio of clean energy assets being developed by CBD Energy in the UK.
The systems are designed to generate an annual output of approximately 1.09GWh representing expected estimated revenues of £4.7 million (approximately US $7.8 million) over the lifetime of the installations. The schools will consume all of the solar power generated, reducing their electricity bills by as much as 20%. With the money saved each school will have spare funds available to further invest in educational facilities for the benefit of the children. The combined annual CO2 savings are estimated to be approximately 561 metric tons.
“These are quality assets that will generate a significant reduction in the energy overheads of all 22 schools. The program of installations also will deliver development profits as long-term cash flows to CBD Energy and its investors, and demonstrates to SEB investors CBD’s ability to source and construct high-quality low-risk projects. CBD is committed to developing and owning quality assets in the UK, US and Australia that generate long-term reliable revenue streams,” stated CBD Energy CEO Gerry McGowan.
The installations are supported by a 25-year power purchase agreement (PPA) with the schools, and will be managed by Secured Energy Bonds plc (SEB), CBD’s wholly-owned UK subsidiary. SEB raised more than £7,500,000 (approximately $12,366,000) through an over-subscribed retail ‘mini-bond’ that closed in December 2013; a portion of which is allocated to this project. In line with CBD’s corporate model, SEB will construct, own and operate these installations for their expected lifetime.