XZERES Corp. (OTCQB: XPWR) has launched an external wind investment portfolio, Gale Force Infrastructure Fund, L.P., which includes initial orders of the XZERES 442SR 10kW wind power turbine system for permitted sites, and a substantial backlog for future purchases of XZERES wind turbines.
As previously announced, XZERES and Gale Force in partnership with project developers and key investors, are actively focused on building a large distributed wind investment portfolio utilizing the XZERES 442SR 10kW turbine. This investment vehicle (FITCO), utilizing the Feed-in-Tariff Co-Operation program, creates a mutually beneficial arrangement with the land owner and will drive significant sales volumes for the company.
XZERES is pleased to report that Gale Force has now completed its structure with significant funding committed by its key investors for the current backlog and future orders. The Gale Force investment portfolio is expected to grow up to $100 million to fund future projects. In addition, the multiple project development partners, including Prowind (UK) Ltd., continue to make significant progress in securing sites. The current volume of targeted sites is expected to exceed 150 turbines and the collective efforts of the developers are expected to continue at a rate of 25 or more additional sites per month.
"The formation and funding of Gale Force represents a major milestone for XZERES as well as the distributed power industry as a whole," said XZERES CEO Frank Greco. "Gale Force, utilizing the Feed-in-Tariff program, provides landowners with electrical power for whom the Feed-in-Tariff program was ultimately intended, with the added environmental benefits given the clean, renewable energy provided by our advanced wind-turbine systems."
According to Greco, "Through the hard work of our internal staff and multiple project development partners our focus over the past four months has been to secure sites that meet our specific criteria. Our investment portfolio partners have provided the necessary funding to pull this entire effort together and enable XZERES to sell and deliver a substantial volume of turbines."
"Our initial efforts with FITCO have targeted the UK, where we have developed and refined the terms and methods for successful implementation; the current installed base throughout the UK further substantiates our position," continued Greco. "We're now starting to bring FITCO to additional markets, beginning with Japan in the near term and then to other markets where the incentives offer attractive returns and energy cost benefits."
FITCO (Feed-in-Tariff Co-Operation), was structured by XZERES in conjunction with key strategic investors to address the challenges most end customers or landowners face with respect to the financing needs to purchase a wind turbine system. Renewables, such as small wind systems, have attractive returns and long-term cost of energy benefits, but at the same time require an upfront investment. The portfolio model provides the unique advantage of creating a mutually beneficial arrangement with the land owner while yielding an attractive investment return for the portfolio investors. In essence, the land owner shares the economic benefits that the wind system provides with the investor in return for the investor providing the upfront required investment needed to install a system. XZERES' financing partner, Renewable Power Resources, LLC, is playing an active role in supporting this program and is further demonstrating their strong commitment to building XZERES into a major global renewable energy company.
Gale Force's investment strategy correlates with other successful renewable energy financing models. It recognizes how the recent explosive growth in the solar industry has been largely due to the introduction of unique financing solutions, such as those utilized by Solar City and Real Goods Solar. XZERES is proactively working with key partners to provide financing solutions for the small wind industry, as well as developing other unique financing strategies for small wind systems.