In May 2016, LGC entered into an agreement with UK Solar power and storage specialists, Commercial Funded Solar Ltd (“CFS”), designed to assess the potential for installing and operating renewable energy and hybrid power solutions (solar power, energy storage and integrated power management systems) in Cuba. In 2014, Cuba set a target of producing 24 percent of its electricity from renewable sources by 2030. Solar is a big part of this initiative due to the abundance of sunshine in the country.
CFS is a UK based muti-national company with operations in the UK, Africa and South America specialising in the installation of medium sized, commercially funded renewable power and storage systems of between 30kw and 1MW each. CFS is currently focused on delivering a large number of investor funded commercial systems to Academy and School Groups in the UK public and private education sector as well as providing a commercially funded model for investors wanting a higher return, short term (1-3 year) investment in countries with supportive governments with immediate requirements to replace diesel generation, such as in Cuba.
CFS and LGC intend to lead the development and construction of each project with the funding coming from external investors. Under the terms of the agreement, CFS and LGC will share on a 50/50 basis the development, funding and construction revenues for each renewable power plant built, and share on a 75/25 basis the 10-20 year operational contracts for all the systems.