UGE International Ltd. (UGE:TSX.V; UGEIF:OTCQB) reported in a news release that it has entered into agreements to develop two new solar projects that combined are expected to have a total rated capacity of 9.0MW DC. The company advised that the projects are to be built in Maryland and Maine and that together will add US$18.1 million to its project backlog.
UGE International explained that the Maine community solar project will serve to reinforce its strength in that market as it successfully secured several other similar projects in the state over the past year. The company stated that this latest project is planned to have a rated capacity of 6.5MW DC, making it capable of generating about US$1.1 million in yearly revenue once the plant is fully up and running. UGE indicated that, in addition, it "expects to commence construction on its first self-financed projects in the state this summer."
The firm noted that the new 2.5MW DC community solar project will be its first such development in the state of Maryland. UGE pointed out that Maryland, along with several other states, has instituted and stepped up community solar regulations in recent years making it a viable and attractive market for the company. The firm said stated it estimates that once it is fully operational the newly commissioned project will be able to generate greater than US$0.5 million in revenue annually.
The company's Chief Revenue Officer Tyler Adkins stated, "Community solar is growing rapidly in states looking to increase access to clean energy while lowering prices for consumers. We see significant opportunity to further expand throughout the northeast and mid-Atlantic U.S. this year...Our development team is evaluating a growing number of opportunities in new and existing markets, with a focus on earning strong returns while lowering energy costs for our subscribers."
The firm noted that the Maryland community solar program regulations limit individual project size to 2.0MW AC (or approximately 2.5MW DC). In aggregate a total program size of 418MW is permitted, of which 125MW is required to be allocated to low and middle income customers. UGE said that it sees significant opportunities to offer affordable and clean energy to these customers.
UGE International is a developer, owner and operator of commercial and community solar projects in the U.S. and other strategic markets. The company noted that to date it has designed, engineered, constructed and completed sustainable projects totaling 400MW.
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