FOR IMMEDIATE RELEASE: June 13, 2011
KDC Solar Enters 3-Year, 300 Megawatt Agreement with SPI Solar and LDK Solar to serve as KDC Solar’s Preferred EPC and Solar Panel Supplier in New Jersey and New York
Bedminster, NJ, June 13, 2011 – KDC Solar LLC (“KDC Solar”), a leading commercial solar developer, owner and operator, headquartered in Bedminster, New Jersey, today announced that it has entered into an agreement with SPI Solar (“SPI”) (OTCBB: SOPW), a leading vertically integrated photovoltaic (“PV”) solar energy company and its majority shareholder, LDK Solar (“LDK”) (NYSE: LDK), a world leader in the production of solar wafers and cells, whereby SPI and LDK will serve as KDC Solar’s preferred provider of engineering, procurement and construction (“EPC”) services along with operations and maintenance (“O&M”) services for a significant portion of KDC Solar’s existing portfolio of solar energy facility (“SEF”) projects.
The 3-year agreement establishes a minimum offer commitment of 150 megawatts and sets as a goal for KDC Solar, SPI, and LDK to achieve a total of 300 megawatts in SEF projects in New Jersey and New York. For all projects executed under this agreement, SPI will provide EPC and O&M services, and LDK will supply their high-quality solar modules through SPI. Additionally, SPI and LDK have agreed to provide construction financing and facilitate long term financing, supported by LDK, of up to $750 million for projects covered by this agreement.
KDC Solar’s focus is on “behind the meter” projects of 2 MWs and larger that supply long term, inexpensive solar electricity to businesses and institutions, which, in turn, bring a significantly reduced cost-of-operations to its customers. KDC Solar’s goal is to supply 100% of its customer’s electric needs from its facilities. At present, KDC Solar has approximately 18 megawatts of SEFs under construction in New Jersey, comprised of roof mounted, ground mounted and car ports projects.
KDC Solar’s current pipeline in the New Jersey market exceeds 150 megawatts. As the Northeast market continues to develop and KDC Solar pursues additional pipeline opportunities in the region, up to 300 megawatts of projects could come to fruition under the agreement.
“We are very happy to have selected both SPI and LDK to work with,” said Hal Kamine, CEO of KDC Solar, "SPI’s reputation for designing and building low-cost, high quality commercial solar energy facilities for businesses across the nation, coupled with solar panels supplied by LDK, all supported by long term financing will greatly benefit New Jersey and New York,” Mr. Kamine stated.
“LDK is proud to participate as a partner to this agreement by supporting the financing of these projects and supplying essential products through SPI for KDC Solar,” said Xiaofeng Peng, LDK’s Chairman and CEO. “Our investment in SPI as a downstream development company is proving successful for both of our companies and those we work with as well,” Mr. Peng stated. “We look forward to expanding our distribution throughout North America and assisting in job retention and new job creation with every new solar energy facility SPI builds.”
“This agreement is a perfect blend of talent, skill sets and opportunity,” said Stephen Kircher, CEO of SPI. “KDC Solar is focused on helping commercial enterprises in the Mid-Atlantic States to mitigate rising energy costs by developing large-scale solar energy facilities under a variety of design and engineering requirements, at which SPI excels. At the same time, this agreement underscores the importance and value the SPI/LDK relationship represents when it comes to leveraging LDK’s vertical integration and the low-cost, high-quality products and financing capabilities LDK adds to our business ,” Mr. Kircher concluded.
About KDC Solar LLC:
KDC Solar LLC (“KDC Solar”), a leading commercial solar developer, owner and operator, headquartered in Bedminster, New Jersey. KDC Solar is the successor company to Kamine Development Corp , which was established in 1985 to develop, construct, own, and operate co-generation natural gas fired power plants and ultimately became one of the largest independently owned power producers in the New York/New Jersey area owning and generating more than 600 MWs of electricity. KDC Solar is supported by an allocation of $225 million in equity from Diamond Castle Holdings, a New York-based private equity fund with more than $1.8 billion of committed capital under management. For more information, visit www.kdcsolar.com or contact:
KDC Solar, LLC
Thomas P. Lynch
Phone: (908) 212-3623