Ann: CBD not to proceed with acquisition of Neigh, page-9

re: Ann: CBD not to proceed with acquisition ... Do we need Alinta's comments?

In the Chairman's address it is said that CBD has hired the CEO of Neighbourhood Energy. CBD can therefore recreate Neighbourhood Energy, incorporating improvements in business model, HR, etc from the experience of the previous company.

In going over the PV supply price of 5-7c/kWhr it would appear (please correct me) that it is assuming

- 25year installation life,
- 4% interest rate
- installed system cost of <$1/Wp!!!!!!!!!! This is an amazing figure given that the ex-factory module price for silicon has just this week dropped to one dollar AND that Balance-of-System costs are usually 1-2 times that of the module.

A more realistic figure for PV is around 16c/kWhr for a system cost of $3/Wp (I think).