VALIDATION REPORTBELECTRIC SOLAR LTD.
VALIDATION OF THE
WILLERSEY SOLAR FARM LTD

BUREAU VERITAS CERTIFICATIONREPORT NO.BVC/UK-VD/001/2014
REVISION NO. 01.1

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORT
Date of first issue:

Organizational unit:

14/07/2014

Bureau Veritas Certification

Client:Client ref.:

Belectric Solar Ltc.

Mr. Eoin Martin

Summary:

Bureau Veritas Certification has conducted the validation of the Willersey Solar Farm Ltd., constructedby Belectric Solar Ltd., which is located in the village of Willersey, United Kingdom, on the basis of the
Climate Bond Standard.
The validation scope is defined as an independent and objective review of the Bond, its associatedprojects and/or its physical assets, and consisted of the following three phases: i) desk review of theBond and its associated projects documentation and additional background documents; ii) on-site
inspection; iii) resolution of outstanding issues and the issuance of the final validation report and opinion.
The overall validation, from Contract Review to Validation Report & Opinion, was conducted using
Bureau Veritas Certification internal procedures.
The first output of the validation process is a list of Clarification Requests, Corrective Actions Requests,
presented in Appendix A. Taking into account this output, the Bond issuer revised its Bond and its
associated project documentation.
In summary, it is Bureau Veritas Certification’s opinion that the Bond meets all relevant Climate Bond
Standard requirements.

Report No.:

Subject Group:

BVC/UK-VD/001/2014

Climate Bonds

Project title:

Indexing terms
Work approved by:Willersey Solar Farm Ltd.

Murray Sayce

Work carried out by:

Flavio Gomes - Team Leader
James Boanpong - Technical Specialist

No distribution without permission fromthe Client or responsible organizational
unit

Internal Technical Review carried out by:

Limited distribution

Murray Sayce
Date of this revision:Rev. No.:

Number of pages:

18/07/2014

01.1

24

Unrestricted distribution

2

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORT

Table of Contents

Page

1.

INTRODUCTION ...................................................................................................... 42.

METHODOLOGY ..................................................................................................... 4

2.1.
2.2.
2.3.
2.4.

Review of Documents
On-site Inspection
Resolution of Clarification and Corrective Action Requests
Internal Technical Review

3.

VALIDATION CONCLUSIONS ................................................................................. 5

3.1.
3.2.
3.3.
3.4.
3.5.
3.6.
3.7.
3.8.
3.9.
3.10.
3.11.
3.12.
3.13.
3.14.

Project Nomination
Use of Proceeds
Non-Contamination
Environmental and Social Integrity
Verification
Climate Bond Certification and Limits of Use
Non-Compliance
Eligible Projects and Physical Assets
Technical Criteria
Traceability
Project Holding
Confidentiality
Settlement Period
Ring-Fenced Cost Centres

4.

VALIDATION OPINION .......................................................................................... 105.

REFERENCES ....................................................................................................... 11

4
4
4
5

6
6
7
7
8
8
8
9
9
9
10
10
10
10

APPENDIX A: VALIDATION PROTOCOL ............................................................................ 123

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORT

1. INTRODUCTION
Belectric Solar Ltd. has commissioned Bureau Veritas Certification to validate its Climate Bond
project Willersey Solar Farm Ltd. (hereafter called “the Project”) at Willersey, Gloucestershire,
UK.
This report summarizes the findings of the validation, performed on the basis of the Climate
Bond Standard criteria.

2. METHODOLOGY
The overall validation, from Contract Review to Validation Report & Opinion, was conductedusing Bureau Veritas Certification internal procedures.
In order to ensure transparency, a validation protocol was customized for the project, according
to the version 1.0 of the Climate Bond Standard. The protocol shows, in a transparent manner,
criteria (requirements), means of validation and the results from validating the identified criteria.
The validation protocol serves the following purposes:
It organizes, details and clarifies the requirements a Climate Bond is expected to meet;
It ensures a transparent validation process where the Validation Team will document how aparticular requirement has been validated and the result of the validation.
The completed validation protocol is enclosed in Appendix A to this report.

2.1. Review of Documents
The Bond and its associated project documentation submitted by Belectric Solar Ltd. andadditional background documents related to the project design were reviewed.

2.2. On-site Inspection
On 04/07/2014 Bureau Veritas Certification performed an on-site inspection to confirm selected
information and to resolve issues identified in the document review. Representatives of Belectric
Solar Ltd. were interviewed.

2.3. Resolution of Clarification and Corrective Action Requests
The objective of this phase of the validation is to resolve issues that require further elaboration,
research or expansion prior to Bureau Veritas Certification’s positive conclusion on the Climate
Bond.
A Corrective Action Request (CAR) is raised if applicable Climate Bond Standard requirements
have not been met.

4

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORTA Clarification Request (CL) is raised, if information is insufficient or not clear enough todetermine whether the applicable Climate Bond Standard requirements have been met.
To guarantee the transparency of the validation process, the issues raised, the responses
provided by the Bond issuer, the means of validation of such responses and references to any
resulting changes in the Bond documentation are documented in the Validation Protocol in
Appendix A.

2.4. Internal Technical Review
The validation report underwent an Internal Technical Review (ITR).
The ITR is an independent process performed to examine thoroughly that the process ofvalidation has been carried out in conformance with the requirements of the Climate Bond
Standard as well as internal Bureau Veritas Certification procedures.
The Team Leader provides a copy of the validation report to the reviewer, including any
necessary validation documentation. The reviewer reviews the submitted documentation forconformance with the validation scheme. This will be a comprehensive review of all
documentation generated during the validation process.
When performing an Internal Technical Review, the reviewer ensures that:
The validation activity has been performed by the Validation Team by exercising utmost
diligence and complete adherence to the Climate Bond Standard requirements.
The review encompasses all aspects related to the Bond, closure of CARs and CLs during
the validation exercise, and review of sample documents.
The reviewer may raise Clarification Requests to the validation team and will discuss thesematters with the Team Leader.

3. VALIDATION CONCLUSIONSIn the following sections, the conclusions of the validation are stated.
The findings from the desk review of the original Bond documents and the findings from the onsite inspection are described in the Validation Protocol in Appendix A.
The Clarification and Corrective Action Requests are stated, where applicable, in the following
sections and are further documented in the Validation Protocol in Appendix A. The validation of
the Project resulted in 1 CAR and 3 CLs.
The CARs and CLs were closed out based on adequate responses from the Bond issuer whichmeet the applicable requirements. They have been reassessed before their formal acceptanceand closure.

5

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORT

3.1. Project Nomination
As per Bond invitation document “Big60Million – Power to the People”, the Climate Bond issued
specifies the Willersey Solar Farm Ltd. as the project collateral and physical assets with which it
is associated. Willersey Solar Farm Ltd. is therefore the “Nominate Project”.
At the document review stage, the Validation Team was presented with a draft version of theBond invitation document. Therefore a CL (1) was raised requesting for a final version of such
document.
A final version of the Bond invitation document was sent on 08/07/2014. The Validation Teamevaluated it and confirms the right nomination of the project and this CL was closed.
Eligibility of the assets specified as backing, or linked to, the Bond is discussed in item 3.8 ofthis report.
A CL (2) was raised asking the Climate Bond Standard Board for confirmation that thenominated project is not nominated in a previous Climate Bond. This was confirmed by the
Board on 27/05/2014.

3.2. Use of Proceeds
Allocation of proceeds/funds could not be verified at the document review stage as Bond was
not issued yet and therefore there were no proceeds to be allocated. A CL (3) was then raised.
The Validation Team then was provided with the following information on 04/07/2014:••

A letter from the Bond manager Rockfire, confirming that it is:•Regulated Manager and Bond Principle;•

Receiving Agent and Registrar of the Bonds during the application period for theBonds and the issue of the Bonds to investors.

Rockfire’s engagement letter to Big60Million Ltd dated 14/03/2014, which outlines theabove mentioned functions in more detail.

The Validation Team examined the above mentioned document and concluded that Rockfire is
responsible for administration of the Bond and act in the interests of the bondholders.
This combination of roles provides the required “tracking system” that will ensure allocatedproceeds are being used (earmarked) for the assets claimed.
This CL was closed, however, the Validation Team recommends that once proceeds exist, areview should be made to confirm this has happened.
The investment in the Nominated Project could not be verified at the document review stage
and a CL (4) was raised.

6

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORTThe Validation Team was provided with the Bond manager’s Terms of Engagement for theProvision of Services for an Asset Backed Solar Energy Mini-Bond, issued on 14/03/2014.
Item “Fees” of the above mentioned document caps the investment in the Nominated Project tothe maximum bond subscription of £4m, and this CL was closed.

3.3. Non-Contamination
Although the allocation of proceeds/funds could not be verified at the document review stage,as Bond was not issued yet (refer to section 3.2 above and CL3), the final version of the Bond
invitation document defines that the funds will be allocated to the Nominated Project only, andtherefore, contamination is not expected.
The Validation Team recommends that this item is verified after the Bond is issued.
The requirement for the Climate Bond issuing organization to establish systems to monitor andaccount for the proceeds of a Climate Bond, as the funds flow through a treasury or othermixed-funds pool, was considered not applicable in this case as the investment in the
Nominated Project is known and defined in the Bond invitation document.

3.4. Environmental and Social Integrity
The Validation Team has verified Willersey Solar Farm Ltd. and satisfied that Belectric Solar Ltd.
worked closely with the Local Planning Authority in a positive and proactive manner to securesustainable development which will improve the economic, social and environmental conditionsof the area.
The Validation Team can confirm that Willersey Solar Farm Ltd. operates in accordance with
relevant environmental and social laws and regulations and adhere to environmental, social andgovernance standards and best practices.
Planning permission of the Solar Photovoltaic Power Plants was granted to Belectric Solar Ltd
on 13/06/2013 to develop a ground mounted solar farm to generate up to 4MW of electricity,with associated infrastructure including inverter platforms, transfer station, collecting station,
underground cable for connection to the local electricity distribution network, temporary
construction compound, security fencing and ecological and landscape enhancement measuresat Land Parcel To The North Of The Byre Badsey Lane Willersey Gloucestershire. Below is theapplication and file references and date of decision.
APPLICATION REF: 13/00578/FUL
FILE REF: CD.8866/L
DATE OF DECISION: 13/06/ 2013
The permission was granted in pursuance of their powers under the above Act, (TOWN AND
COUNTRY PLANNING ACT 1990) and in accordance with the requirements of the Town andCountry (Development Management Procedure) (England) Order 2010.

7

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORTThe development was fully considered and assessed to comply with the relevant policy(ies)contained within the Development Plan as detailed in the section called "Relevant Policies", on
the certificate. The Council therefore PERMITED the above development in accordance with thedetails given on the application form and submitted plans.
At the document review stage, no evidences were found that the issuer had publicly disclosed
to Climate Bond holders whether they and/or the Nominated Project(s) financed, or to befinanced, adhere to environmental, social and governance standards and best practices.
Therefore a CAR (1) was raised.
A final version of the Bond invitation document was sent on 08/07/2014. On page 18 it is statedthat “The site was constructed with the community and environment in mind and in order toadhere to environmental, social and governance standards and best practices.” The Validation
Team evaluated it and this CAR was closed.

3.5. Verification
The Climate Bond issuing organization engaged Bureau Veritas Certification to undertake acompliance audit of the Bond (whether existing or proposed) to confirm its compliance with the
Climate Bond Standard.
The Climate Bond issuing organization additionally agreed to provide further information if
requested by the Climate Bond Standards Board, as per item 3 of the Terms and Conditions of
the signed contract between Belectric Solar Ltd. and Bureau Veritas Certification.
There are no declared intentions, by the Climate Bond issuing organization, of further Climate
Bonds issuance.

3.6. Climate Bond Certification and Limits of Use
Belectric Solar Ltd. may register its Bond with the Climate Bond Standards Board, and therefore
has the right to use de Climate Bond Certification Mark in association with the relevant Bonds(but no others) for the duration of the Bond term, provided that the Bonds remains Climate Bond
Standard compliant.
The Validation Team therefore recommends that the Bond’s compliance with the Climate Bond
Standard is periodically verified.

3.7. Non-Compliance
If a Climate Bond is no longer compliant with the Climate Bond Standard, then the issuer isrequired to disclose that fact to the Climate Bond Standards Board, the bondholders and therelevant exchanges.
The Validation Team therefore recommends that the Bond’s compliance with the Climate Bond
Standard is periodically verified.

8

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORT

3.8. Eligible Projects and Physical Assets
The funds raised under the Climate Bond are used to finance Solar Energy Generation.
The electricity generated from this facility is 100% derived from solar energy sources.
The facility has a dedicated transmission infrastructure to supply power generated to the grid.
Use of non-solar fuel for gas-fired back up was not evident during the on-site inspection.

3.9. Technical Criteria
The yield assessment of the system was commissioned by Belectric GmbH Wadenbrunner Str.
10 97509 Kolitzheim.
The report presents the expected electricity yield which was predicted for the photovoltaic
system in The Rainbows, England.
The PV system which was designed with modules by First Solar Inc., model FS-392 Black
Series and inverters by SMA Solar Technology AG, model Sunny Central 800CP XT was
expected to deliver a total DC power of 3781.4 kWp.
The annual average global irradiation at the site on a horizontal plane is 999 kWhm², and an
initial average annual specific yield of 991 kWh/kWp was predicted.
The expected annual yield based on the system dimensions on average was predicted to be3746 mWh for the first year and expected performance ratio of the system for the first year to be
87.2%
Taking the degradation effect of CdTe thin-film modules into account, the resulting specificannual yield over an operation period of 20 years is expected to be 931 kWh/kWp, and then the
average yield is 3521 mWh p.a. and the performance ratio is 82.0%.
The uncertainty of the models and calculation steps with respect to the average specific yield
and average yield is estimated to be 7.5% - assuming a simple standard deviation.
The above values were obtained through yield assessment by Fraunhofer Institute for Solar
Energy Systems ISE.
The actual system yield was verified during physical inspection of the plant on 04/07/2014 andwe can confirm a yield of 1459 mWh since its three months operation. Based on the current
yield we anticipate that the annual predicted value of 3746 mWh for the first year is most likely
to be met.

3.10. Traceability
This requirement was considered not applicable as this is a Project Development Bond as per
Bond Invitation Document.

9

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORT

3.11. Project HoldingThis requirement was considered not applicable as this is a Project Development Bond as per
Bond Invitation Document.

3.12. Confidentiality
This requirement was considered not applicable as this is a Project Development Bond as per
Bond Invitation Document.

3.13. Settlement Period
This requirement was considered not applicable as this is a Project Development Bond as per
Bond Invitation Document.

3.14. Ring-Fenced Cost Centres
This requirement was considered not applicable as this is a Project Development Bond as per
Bond Invitation Document.

4. VALIDATION OPINION
Bureau Veritas Certification has performed a validation of the Willersey Solar Farm Ltd.,
constructed by Belectric Solar Ltd., which is located in the village of Willersey, United Kingdom.
The validation was performed on the basis of the Climate Bond Standard criteria.
The validation consisted of the following three phases: i) desk review of the Bond and its
associated projects documentation and additional background documents; ii) on-site inspection;iii) resolution of outstanding issues and the issuance of the final validation report and opinion.
The review of the Bond and its associated project documentation, and the subsequent on-site
inspection, has provided Bureau Veritas Certification with sufficient evidence to determine thefulfillment of stated criteria.
In our opinion, the project meets all relevant Climate Bond Standard requirements.

10

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORT

5. REFERENCES
/1/
/2/
/3/
/4/
/5/

Bond invitation document: Big60Million – Power to the People;
Letter from the Bond manager issued on 03/07/2014: Rockfire Capital Limited
confirmation of role;Terms of Engagement for the Provision of Services for an Asset Backed Solar Energy
Mini-Bond;
Willersey Solar Farm Ltd. planning permission;
Yield assessment report prepared by Fraunhofer Institute for Solar Energy Systems.

11

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORTAPPENDIX A: VALIDATION PROTOCOL
Table 1

Audit requirements based on the Climate Bond Standard (version 1 prototype)
CHECKLIST QUESTIONCOMMENTS

Draft Concl

Final Concl

CL1

OK

1.2. Are the assets specified as backing, or linked to, the Refer to Item 8 of this protocol.
Bond eligible assets as specified under Part B of the
Climate Bond Standard?

--

1.3. Is the asset specified a loan or other financial No. This is a project development bond as
instrument?
per the Bond Invitation Document.

OKOK

1.4. If yes, does the underlying collateral comply with Part Not applicable.
B of the Climate Bond Standard?

-

-

CL 2

OK

The Bond Invitation Document defines thatthe proceeds will be allocated to theNominated Project.

CL 3

OK

£4 million pounds, as per Bond Invitation
Document

OK

OK

Part A: General Requirements
1. Project Nomination
1.1. Does the Climate Bond issued specify the project The Bond Invitation Document, specify
collateral of physical assets with which it is associated Willersey Solar Farm Ltd. as the physical(these are referred to as the “Nominated Project(s)”?
asset associated with the bond.

1.5. Are the assets specified as backing, or linked to, the This is the first Climate Bond issued by
Bond nominated to pervious Climate Bonds?
Willersey Solar Farm Ltd.
2. Use of Proceeds
2.1. Are the proceeds allocated to Nominated Project(s)?

2.2. What is the value of the Bond?

12

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORTCHECKLIST QUESTION

Draft Concl

Final Concl

CL 4

OK

2.4. What is the Fair Market Value of the Nominated Not applicable in this case as the investment
Project(s)?
in the Nominated Project is known.

--

2.5. Is the original issuance amount of the Climate Bond This evaluation depends on the answer togreater than the investment in the Nominated Project(s) of 2.3.
the Fair Market Value of the Nominated Project(s) at thetime of its nomination?

CL 4

OK

CL 3

OK

3.2. If not, are these funds placed in temporary Not applicable.
investments?

--

3.3. If yes, do these temporary investments include Not applicable.
greenhouse gas intensive projects?

--

3.4. Are unallocated funds in cash, or cash equivalent Not applicable.
instruments, being held within a Treasury function?

--

3.5. Are any systems used for temporary management of Not applicable.
Climate Bond funds and investments recorded anddisclosed to this verifier?

--3.6. Has the Climate Bond issuing organization Not applicable in this case as the investment
established systems to monitor and account for the in the Nominated Project is known.
proceeds of a Climate Bond as these funds flow through a--

2.3. What is the investment in the Nominated Project(s)?

COMMENTS
No information provided so far.

3. Non-Contamination
3.1. Are the funds already allocated to the Nominated The Bond Invitation Document defines that
Project(s)? (Issuers are permitted a grace period of one the funds will be allocated to the Nominatedyear, which can be extended subject to Climate Bond Project., only.
Standards Board approval, to allocate or re-allocate funds
to Nominated Project(s).

13BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORTCHECKLIST QUESTION
treasury or other mixed-funds pool?

COMMENTS

Draft Concl

Final Concl

OKOK

4. Environmental and Social Integrity
4.1. Does the Nominated Project(s) operate in accordance The Validation Team has verified Willersey
with relevant international, regional and national Solar Farm Ltd. and satisfied that Belectric
environmental and social laws and regulations?
Solar Ltd. has worked closely with the Local
Planning Authority in a positive andproactive manner to secure sustainable
development which will improve theeconomic,socialandenvironmental
conditions of the area.
The Validation Team can confirm that
Willersey Solar Farm Ltd. operates inaccordance with relevant environmental andsocial laws and regulations and adhere toenvironmental, social and governancestandards and best practices.
Planning
permission
of
the
Solar
Photovoltaic Power Plants was granted to
Belectric Solar Ltd. on 13/06/2013 todevelop a ground mounted solar farm togenerate up to 4MW of electricity, withassociated infrastructure including inverter
platforms, transfer station, collecting station,
underground cable for connection to the
localelectricity
distribution
network,
temporary construction compound, security
fencing and ecological and landscape

14

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORTCHECKLIST QUESTIONCOMMENTS
enhancement measures at Land Parcel To
The North Of The Byre Badsey Lane
Willersey Gloucestershire. Below is theapplication and file references and date ofdecision.
APPLICATION REF: 13/00578/FUL
FILE REF: CD.8866/L
DATE OF DECISION: 13/06/ 2013
The permission was granted in pursuance of
their powers under the above Act, (TOWN
AND COUNTRY PLANNING ACT 1990) andin accordance with the requirements of the
Town
andCountry(Development
Management Procedure) (England) Order2010.
The development was fully considered andassessed to comply with the relevant
policy(ies) contained within the Development
Plan as detailed in the section called"Relevant Policies", on the certificate. The
Council therefore PERMITED the above
development in accordance with the details
given on the application form and submitted
plans.

4.2. Has the issuer publicly disclosed to Climate Bond
holders whether they and/or the Nominated Project(s)financed, or to be financed, adhere to environmental,social and governance standards and best practices?

There are no evidences that the issuer has
publicly disclosed to Climate Bond holders
whether they and/or the NominatedProject(s) financed, or to be financed,

Draft Concl

Final Concl

CAR 1

OK

15

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORTCHECKLIST QUESTION

Draft Concl

Final Concl--

5.1. Has the Climate Bond issuing organization engaged a Yes, Bureau Veritas Certification as per
third-party Verifier to undertake a compliance audit of the signed contract between Belectric Solar Ltd.
bond (whether existing or proposed) to confirm its and Bureau Veritas Certification.
compliance with the Climate Bond Standard?

OKOK

5.2. Has the Climate Bond issuing organization additionally Yes, as per item 3 of the Terms andagreed to provide further information if requested by the Conditions of the signed contract between
Climate Bond Standards Board?
Belectric Solar Ltd. and Bureau Veritas
Certification.

OKOK

5.3. Does the Climate Bond issuing organization intends to There are no declared intentions of further
issue further Climate Bonds?
Climate Bonds issuance.

OKOK

5.4. If yes, has the Climate Bond issuing organization Not applicable.
provided the verifier with all Climate Bond compliancedocumentation related to existing Climate Bonds?

-

-

OK

OK

-

-

-

-

4.3. If yes, which ones?

COMMENTS
adhere to environmental, social andgovernance standards and best practices.
Refer to 4.2.

5. Verification

Part B: Low Carbon Contribution
8. Eligible projects and physical assets
8.1. Are the funds raised under the Climate Bond used to No. The funds are used to finance Solar
Energy Generation.
finance or refinance Wind Energy Generation?
8.2. If yes, do the projects include one or more than thefollowing?
Not applicable.
8.2.1. The development and construction of wind farms.

16

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORTCHECKLIST QUESTIONCOMMENTS

8.2.2. Operational production of manufacturing facilities Not applicable.
wholly dedicated to wind energy development.
8.2.3. Wholly dedicated transmission infrastructure for Not applicable.
wind farms.
8.3. Are the funds raised under the Climate Bond used to Yes as per Bond Invitation Document.
finance or refinance Solar Energy Generation?
The yield assessment of the system wascommissioned
byBelectricGmbH
Wadenbrunner Str. 10 97509 Kolitzheim
And the yield assessment report prepared by
Fraunhofer Institute for Solar Energy
Systems
ISE
Tabea
Obergfell
Heidenhofstraße 2 79110 Freiburg Germany
Date: 13/11/2013
Report ref: PMZ-942-TO-1334-V1.0
The report presents the expected electricity
yield which was predicted for thephotovoltaic system in The Rainbows,England.
The PV system which was designed withmodules by First Solar Inc., model FS-392
Black Series and inverters by SMA Solar
Technology AG, model Sunny Central
800CP XT was expected to deliver a total
DC power of 3781.4 kWp.
The average annual global irradiation at thesite on a horizontal plane is 999 kWhm², andan initial average annual specific yield of 991

Draft Concl

Final Concl

-

-

-

-

OK

OK

17

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORTCHECKLIST QUESTIONCOMMENTS
kWh/kWp was predicted.
The expected annual yield based on thesystem dimensions on average waspredicted to be 3746 mWh for the first year
and expected performance ratio of thesystem for the first year to be 87.2 %Taking the degradation effect of CdTe thinfilm modules into account, the resulting
specific annual yield over an operation
period of 20 years is expected to be 931
kWh/kWp, and then the average yield is3521 mWh p.a. and the performance ratio
is 82.0 %.
The uncertainty of the models andcalculation steps with respect to the average
specific yield and average yield is estimatedto be 7.5 % - assuming a simple standard
deviation.
The above values were obtained throughyield assessment by Fraunhofer Institute for
Solar Energy Systems ISE.
The actual system yield was verified duringphysical inspection of the plant on
04/07/2014 and we can confirm a yield of
1459 mWh since its three months operation.
Based on the current yield we anticipate thatthe annual predicted value of 3746 mWh forthe first year is most likely to be met.

Draft Concl

Final Concl

18

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORTCHECKLIST QUESTION
8.3. If yes, do the projects include one or more than thefollowing?

COMMENTS-

8.3.1. The development, construction and operation of The electricity generated from this facility issolar electricity generation facilities, where a minimum of hundred (100%) derived from solar energy
85% of electricity generated from the facility is derived sources.
from solar energy resources.
8.3.2. Wholly dedicated transmission infrastructure for The facility has a dedicated transmission
infrastructure to supply power generated tosolar electricity generation facilities.
the grid.
8.4. Do the solar electricity generation facilities use non- Use of non-solar fuel for gas-fired back up
was not evident during the on-site
solar fuel for gas-fired back up?
inspection.
8.5. If yes, what is the allowed non-solar fuel use?
Not applicable.

Draft Concl

Final Concl

-

-

OK

OK

OK

OK

OK

OK

-

-

-

-

-

-

Part C: Bond structures(i) Requirements for Corporate Bonds only
10. Traceability
10.1. Do the financial flows of the bond principal remain Not applicable as this is a Project
between the Climate Bond and the linked Nominated Development Bond as per Bond Invitation
Project(s)?
Document.
11. Project Holding
11.1. Does the issuer of a Corporate Climate Bond with Not applicable as this is a ProjectNominated Projects linked to a portfolio of assets hold Development Bond as per Bond Invitation
eligible assets at least equal to the Fair Market Value at Document.
the time of issuance of the original principal amount of the
Climate Bond?

19

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORTCHECKLIST QUESTIONCOMMENTS

Draft Concl

Final Concl--

13.1. Has the Climate Bond issuing entity demonstrated Not applicable as this is a Projectthat the proceeds of a Climate Bond have been allocated Development Bond as per Bond Invitation
to the Nominated Project(s) within one year after the bond Document.
is issued?

--

13.2. If not, are the surplus or unallocated funds invested Not applicable as this is a Projectin Climate Bond compliant projects not otherwise Development Bond as per Bond Invitation
nominated for a specific Climate Bond issuance? and/orDocument.

--

13.3. Has the issuing entity made temporary investments Not applicable as this is a Projectof surplus funds to the nominal Fair Market Value of the Development Bond as per Bond Invitation
Climate Bond at the time of issuance, in compliance with Document.
the provisions of Clause Non-Contamination of the Climate
Bond Standard?

-

-

-

-

12. Confidentiality
12.1. Is information about Nominated Projects disclosed to Not applicable as this is a Project
Verifier and to members of the Climate Bond Standard Development Bond as per Bond Invitation
Board?
Document.
13. Settlement Period

14. Ring–Fenced Cost Centers14.1. Has the Climate Bond issuing organization Not applicable as this is a Project
established at least on ‘Climate Bond Cost Centre’ to Development Bond as per Bond Invitation
manage and account for funding to Climate Bond eligible Document.
projects?
(ii) Requirements for Portfolio Bonds only
10. Traceability

20

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORTCHECKLIST QUESTIONCOMMENTS

Draft Concl

Final Concl

-

-

-

-

-

-

13.1. Has the Climate Bond issuing entity demonstrated Not applicable as this is a Projectthat the proceeds of a Climate Bond have been allocated Development Bond as per Bond Invitation
to the Nominated Project(s) within one year after the bond Document.
is issued?

--

13.2. If not, are the surplus or unallocated funds invested Not applicable as this is a Projectin Climate Bond compliant projects not otherwise Development Bond as per Bond Invitation
nominated for a specific Climate Bond issuance? and/orDocument.

--

13.3. Has the issuing entity made temporary investments Not applicable as this is a Projectof surplus funds to the nominal Fair Market Value of the Development Bond as per Bond Invitation
Climate Bond at the time of issuance, in compliance with Document.
the provisions of Clause Non-Contamination of the Climate--

10.1. Do the financial flows of the bond principal remain Not applicable as this is a Project
between the Climate Bond and the linked Nominated Development Bond as per Bond Invitation
Project(s)?
Document.
11. Project Holding
11.1. Does the issuer of a Portfolio Climate Bond with Not applicable as this is a ProjectNominated Projects linked to a portfolio of assets hold Development Bond as per Bond Invitation
eligible assets at least equal to the Fair Market Value at Document.
the time of issuance of the original principal amount of the
Climate Bond?
12. Confidentiality
12.1. Is information about Nominated Projects disclosed to Not applicable as this is a Project
Verifier and to members of the Climate Bond Standard Development Bond as per Bond Invitation
Board?
Document.
13. Settlement Period

21

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORTCHECKLIST QUESTIONCOMMENTS

Draft Concl

Final Concl

Bond Standard?

22

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORT

Table 2

List of Clarification and Corrective Action Requests

NUMBERDESCRIPTIONCONCLUSION

CL 1

The Bond Invitation Document is still in its draft version. A final A final version of the bond invitation document was sent ondraft has to be provided as much of the evidences for this 08/07/2014. The Validation Team evaluated it and confirms theassessment are described there.
right nomination of the project and this CL was closed.

CL 2

To be confirmed with the Climate Bond Standard Board if the As per Climate Bond Standard Board message fromnominated project is not nominated in a previous Climate Bond. 27/05/2014, the Climate Bonds Standard Board can provide
assurance that the Bond has not been certified before.
Allocation of proceeds/funds cannot be verified at the moment The Validation Team was then provided with the following
as bond was not issued yet and therefore there are no proceeds information on 04/07/2014:
to be allocated. Seek clarification from the Climate Bond
• A letter from the bond manager Rockfire, confirming that
Standard Board.
it is:• Regulated Manager and Bond Principle;• Receiving Agent and Registrar of the Bonds during
the application period for the Bonds and the issue ofthe Bonds to investors.
• Rockfire’s engagement letter to Big60Million Ltd dated
14/03/2014, which outlines the above mentionedfunctions in more detail:The Validation Team examined the above mentioned document
and concluded that Rockfire is responsible for administration of
the bond and act in the interests of the bondholders.
This combination of roles provides the required “tracking
system” that will ensure allocated proceeds are being used(earmarked) for the assets claimed.
This CL was closed, however, the Validation Team recommends
that once proceeds exist, a review should be made to confirm

CL 3

23

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2014 rev. 01.1
VALIDATION REPORTNUMBERDESCRIPTIONCONCLUSION
this has happened.

CL 4

CAR 1

Please, provide evidences of investment in the Nominate The Validation Team was provided with the Bond manager’s
Terms of Engagement for the Provision of Services for an Asset
Project.
Backed Solar Energy Mini-Bond, issued on 14/03/2014.
Item “Fees” of the above mentioned document caps theinvestment in the Nominated Project to the maximum bondsubscription of £4m, and this CL was closed.
There are no evidences that the issuer has publicly disclosed to A final version of the Bond invitation document was sent on
Climate Bond holders whether they and/or the Nominated 08/07/2014. On page 18 it is stated that “The site was
Project(s) financed, or to be financed, adhere to environmental, constructed with the community and environment in mind and inorder to adhere to environmental, social and governancesocial and governance standards and best practices.
standards and best practices.” The Validation Team evaluated it
and this CAR was closed.

24