Sunergise Equity

completed

Sunergise International Limited, a private limited company incorporated in New Zealand and based in Nadi, Fiji, offers solar energy solutions through the Energy Services Company (ESCO) business model whereby the Company purchases, installs and owns photovoltaic (PV) solar energy systems on a customer’s premises in exchange for a long term Power Purchase Agreement (PPA). The PPA’s are typically 10-20 years. The total project cost for the immediate pipeline of projects to be developed is US$5.5 million. IFC’s proposed investment is an equity investment of up to US$1 million equity and up to US$1 million in preferred equity in the Company.Sunergise installs grid-connected and off-grid systems for commercial customers. Photovoltaic crystalline modules convert sunlight to DC (direct current) electricity. DC power is then converted into AC (alternate current) power by an inverter, and then used by the PPA customer. For grid-connected systems any excess energy is fed into the grid.Grid-connected systems for commercial customers usually consist of between 50-500 roof-mounted modules, each of 250 Wp (1.6 m x 1 m) wired through combiner boxes to inverters mounted on the wall or roof of the building. Systems are designed to replace between 25-60% of current electricity supply, depending upon client load profile and local utility feed-in requirements, with any excess energy not used by the customer fed into the grid and purchased by the Fiji Electricity Authority (FEA) for a low feed-in tariff. Off-grid systems are isolated from the grid (e.g. island resorts, rural communities) and include a bank of deep cycle lead acid batteries used for energy storage. Sunergise is initially targeting well established, financially strong businesses across a range of sectors to demonstrate the application of solar power and increase industry exposure. Over the past 16 months the Company has installed 873 kWp, consisting of seven roof-mounted grid-connected systems ranging between 22-250 kWp capacity each (on a commercial marina, chicken raising and processing facility, supermarket, residential development and sports club). Additionally, an off-grid system has been installed on an island resort. Sunergise aims to increase installed capacity by 3.05 MWp by the end of 2014, to generate an additional estimated 4,880,000 kWh/kWp, based on estimated energy yield (post availability of 99%) of approximately 1,600 MWh/MWp.The Company is considering installing off-grid community-based systems. At present Sunergise’ installations have been limited to Fiji, but the Company plans to expand to a number of Pacific nations, including Papua New Guinea, Vanuatu, Samoa, and the Solomon Islands. The Company is in the process of becoming a vertically integrated developer. The Company acquired 51% of Fiji-based Clay Energy, engineering, procurement and construction (EPC) company that designs, installs and maintains solar energy systems for customers. Clay Energy has been installing solar energy systems for over 15 years and currently has about 80% of the Fiji solar energy installation market.Benefits of Sunergise’ product include (i) allowing customers to install large solar systems that were unaffordable due to the large capital outlay required; (ii) providing a cost saving on electricity, and (ii) locking in this rate over the life of the PPA; and (iii) using renewable energy. Additional benefits cited by clients included: roof-mounted panels provide shading of the roof surface which reduces roof heating and in turn can reduce the room temperature in some instances; daytime noise produced by off-grid diesel generators is curtailed (important for island-based resorts); reduced generator running and maintenance costs; and substantially reducing fuel supply logistics and handling.