Westinghouse Solar and CBD Energy have formed a joint venture with an intent to design, engineer, procure and construct commercial PV projects in Italy. Westinghouse Solar will have a 25% stake, with the option to take up to a 50% stake, in the profits from CBD’s commercial project pipeline in Italy in exchange for an investment of US$1.5 million (with an option to invest an additional US$1.5 million).
CBD Managing Director, Gerry McGowan, stated, “As we work toward completion of our merger, we are committed to help improve the financial performance of Westinghouse Solar. In doing so, our teams continue to look for opportunities where both parties can bring something to the table. By partnering with Westinghouse Solar, we are able to diversify their business and provide them an attractive earnings source through their investment and participation in our Italy project pipeline. Following merger closing, we intend to pursue additional EPC opportunities in Europe and the U.S.”
This May, CBD announced that it had acquired a US$25 million credit facility to support its development and sale of the Italy projects. In June, the company finished the first of several planned 5MW project in Italy and has negotiated the sale of the first project to a third-party for €12.5 million. The company expects to complete an additional 5 of its 5MW plants starting in October with the projects sold under a framework agreement. Westinghouse Solar would receive its share of earnings from the JV, estimated at US$5 million under a 50% participation stake, for the total 30MW.