Berkley's Renewable Energy Initiative
With the growing worldwide shift to clean and renewable energy, Berkley has launched its Renewable Energy Initiative to diversify into development of renewable energy sources. The company's initial direction is to develop solar photo voltaic ("solar PV") energy opportunities in the European Union. Towards this objective, the company has established operational partnerships with Day4 Energy Corp., Positive Energy Group and other leading EU-based solar PV industry companies to develop solar PV "parks" in Italy and Greece. Development in other EU countries will follow.
Solar Power Opportunity in the EU
To promote energy independence, create high technology jobs and reduce carbon dioxide emissions, the EU adopted binding legislation in 2008 that set national targets for renewable energy generation across the EU. To meet these targets, member nations must offer guaranteed Feed-in Tariff ("FiT") rates to incentivize electrical generation from renewable sources. Italy, with one of Europe's sunniest climates, has embraced solar PV development and now represents Europe's third-largest solar market behind Germany and Spain. Greece, with equally abundant sunshine, has also established highly attractive FiT rates to spur solar energy development.
As solar PV development matured in Spain and Germany, both countries substantially reduced their FiT rates for new projects. Rates in Italy and Greece, however, remain high but are scheduled to decline as additional solar capacity comes on line. Thus the window of opportunity to lock in highly attractive, government-guaranteed rates of return for solar investors in Italy and Greece is limited.
Short & Long Term Objectives
Because FiT rates are locked in and guaranteed for 20 years at the time of licensing (or when connected to the grid, depending on locality) Berkley is acting quickly to take advantage of the currently high current FiT rates. The company has set an objective of developing at least 30 megawatts (MW) of solar PV projects in Italy and Greece by the end of 2012.
Longer term, Berkley intends to use its experience and contacts to develop solar PV parks in other European countries and eventually in North America.
Permitted solar park sites have been identified in both Italy and Greece, and discussions are underway with various stakeholders and agencies to finalize agreements. Berkley expects to begin construction of its initial solar project in May 2011.
