Toronto, Ontario--(Newsfile Corp. - January 16, 2020) - UGE International Ltd. (TSXV: UGE) (OTCQB: UGEID) (the "Company" or "UGE"), a leader in commercial and community solar energy solutions, is pleased to announce the following project updates.
In Q4 2019, UGE achieved several milestones for its US projects. In New York and New Jersey, deployment started on three sites totaling approximately 600kW, with all three expected to reach commercial operation in Q1 2020. For the two New Jersey projects, UGE played the role of financier in addition to the role of developer, which will result in UGE owning the projects and generating recurring revenue over the projects' 25-year lifetime.
Meanwhile, UGE received permits, interconnection approval, and delivered over 1MW of solar panels for the first two projects in its largest US portfolio for a major utility. UGE expects to start construction on the first two sites near the end of Q1 2020 and the three remaining sites in Summer 2020. UGE also submitted permits for the first group of sites in its RISE portfolio for New York City's Economic Development Corporation and expects to commence construction on those projects in Q2 2020.
New York's community solar market continues to grow thanks to significant policy support and attractive economics. In Q1 2020, UGE expects to commence deployment of three additional projects, where two will be similarly financed by UGE, adding to the Company's future recurring revenue base. UGE also expects to start equipment deliveries on its first community solar project in Maine by the end of Q1 2020.
In the Philippines, UGE reached the substantial completion milestone for five projects totaling approximately 500kW, three of which were financed by UGE. One of the projects is for a repeat customer, The Robin Group, which recently added an additional project to its portfolio, as announced last week.
While the above five projects were being completed, deployment on others commenced, which included procurement and shipment of solar panels totaling approximately 1MW. Looking ahead for 2020, UGE has built a robust pipeline in the Philippines and is focused on scaling up its in-country team in both Cebu and Manila.
Throughout 2019, UGE Canada focused on wrapping up past "EPC" (engineering, procurement, and construction) portfolios, as the Company shifts its strategy away from this business segment. UGE met its 2019 goals by receiving final completion on the last nine sites in its Potentia Renewables portfolio, as well as the final site in its Farmington portfolio, which has allowed the Company to focus its efforts on the faster growing US and Philippines growth markets in 2020.
The Canadian solar market has contracted considerably, which is the reason the Company shifted its focus to developing projects in more favorable markets. Accordingly, UGE's Canadian EPC division, UGE Canada RE Ltd., filed a Notice of Intent to file a Proposal in December 2019 as UGE restructures the division for future viability. The Company expects to learn the result of the Proposal by the end of Q1 2020.
Engineering and Consulting Services
Lastly, UGE's engineering and consulting business has been gaining momentum, finishing 2019 busy with projects won in Q3 and Q4. This included completion of the project scope for a 2MW solar project in Georgia, significant progress on a 5MW project in Northern Canada, and meeting the first milestones for an 18MW portfolio in New York state.
"In 2019 we set our sights on clearing prior projects off our plate, and putting a renewed focus on profitable projects in our growth markets," said UGE's COO, Robert van Duynhoven. "I am proud of the focus our team has shown in meeting its goals and to achieving great results in 2020 and excited for what lies ahead."
As UGE focuses on returning to growth and profitability in 2020, it completed a four-for-one consolidation of its shares in late December 2019, which saw its US ticker change to UGEID (its Canadian ticker remains UGE). The Company also looks forward to releasing its audited year-end 2019 results, which it expects will occur in late April 2019.
About UGE International Ltd.
UGE delivers immediate savings to businesses through the low cost of solar energy. We help commercial and industrial clients become more competitive by providing low cost distributed renewable energy solutions at no upfront cost and maximum long-term benefit. With over 380 MW of global experience, we work daily to power a more sustainable world. Visit us at www.ugei.com.