SOURCE: ZBB Energy Corporation

ZBB Energy Corporation

January 06, 2015 09:00 ET

ZBB Energy Signs Power Purchase Agreement With 350+ Unit Condominium Complex in Honolulu

Agreement Utilizing Solar PV in Conjunction With ZBB's Energy Management System and Energy Storage Projected to Provide Condo Owners $2 Million in Net Energy Savings Over Twenty-Year Term

MILWAUKEE, WI--(Marketwired - Jan 6, 2015) - ZBB Energy Corporation (NYSE MKT: ZBB), a leading developer of innovative energy management systems solutions serving the utility, commercial and industrial building markets, today announced the signing of a power purchase agreement (PPA) through a wholly-owned Delaware limited liability company, with a Condo Association of Apartment Owners (AOAO) to provide electricity to a 350+ unit condominium complex in Honolulu, Hawaii. The multi-million dollar two phase project, utilizing solar photovoltaics in conjunction with ZBB Energy technologies, is expected to take up to 24 months to complete. The PPA is projected to result in $2 million in net energy savings for the AOAO during the 20-year term of the agreement. 

The Power Purchase Agreement provides for the AOAO to maximize savings from an installation of solar PV, energy storage and energy management, along with the assurance that, in the event of a grid outage, ZBB can functionally provide for use of "customer-side-of-the-meter" solar and energy storage to continue providing electricity. It is expected that the average savings for the AOAO in the first year will exceed 15% and the savings will continue to grow in future years as the price of grid electricity increases. In addition, ZBB's system solution will substantially reduce CO2 emissions and provide increased customer reliability. ZBB's energy management system solutions are expected to change the market in Hawaii based upon their efficiency, cost savings, improved environmental impact and simplicity.

For ZBB, the Power Purchase Agreement is a unique contracting instrument that provides a vehicle for sales of ZBB equipment and an opportunity for either a long-term investment, or the sale of the PPA to interested third party investors. This particular PPA provides ZBB, or a third party purchaser of the PPA, an opportunity to capitalize on certain state and federal investment tax credits and other incentives that maximize the PPA's long-term return. ZBB is working on several additional PPA type agreements designed to allow a bundling of these investments that would be attractive to high-yield income investors. ZBB will provide more details on the specific structure in subsequent press releases.

"The selection of ZBB's energy management system is validation of our product differentiation and performance for the commercial and industrial (C&I) market," said Brad Hansen, President and Chief Operating Officer of ZBB Energy. "While other C&I energy management systems have limited control capability, functionality and energy efficiency, ZBB's solution ensures the greatest possible energy efficiency with simple system control. Our energy management systems enable a wider portfolio of applications to be provided to the building owner, including intermittent 'power' type applications such as PV ramping, micro-turbine smoothing, frequency regulation and power quality, or scheduled 'energy' applications, such as demand response, peak shaving, rate shifting and back-up power. Other systems in the market struggle to provide for more than one or two applications, but our system delivers complete power and energy applications capability today, while 'future proofing' buildings for tomorrow. ZBB's systems are highly configurable and expandable, so we can tailor them to almost any building, and enable the owner to incorporate additional applications going forward. We look forward to achieving ongoing success in Hawaii and anticipate the closing of additional opportunities similar to this contract." 

"The PPA type of instrument provides ZBB a great opportunity to maximize returns to our shareholders," said Eric Apfelbach, Chief Executive Officer of ZBB Energy. "It also provides an opportunity to diversify the type of investor in ZBB to now include those investors interested in high yield long-term returns. We look forward to working with interested investors and investment bankers on providing the opportunities that will meet their income and return objectives." 

There are more than 5.5 million commercial, industrial and occupied multi-tenant buildings in the United States that spend more than $200 billion on energy every year. ZBB provides high-value solutions to this market that enable building owners and operators to significantly reduce their energy consumption and turn their buildings into energy generating assets.

About ZBB Energy Corporation
ZBB Energy Corporation (NYSE MKT: ZBB) is an applications solutions company providing advanced energy management systems critical to the transition from a "coal-centric economy" to one reliant on an enormous expansion in renewable energy. Whether part of the grid power transmission and distribution network, or behind the meter in commercial, industrial and multi-tenant buildings, ZBB Energy brings vital power control and energy storage solutions to the most pressing problems caused by the incorporation of increasingly pervasive renewable energy generating assets. ZBB Energy also provides energy management systems for off-grid applications such as island or remote power. ZBB is a global corporation, with a joint venture in AnHui, China at Meineng Energy, as well as a strategic partnership with Lotte Chemical in South Korea. For more information, visit: www.zbbenergy.com

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