Canadian developer Atlantic Wind and Solar forms yieldco

Atlantic Wind and Solar Inc (OTCMKTS:AWSL) on Thursday said it has formed a yieldco, Power 1 Inc, to buy and hold projects developed by the Canadian company.

The firm says it has 650 MW of projects at different stages of development in Canada, South America, South Asia and the Caribbean.

The goal of the yieldco, which will also purchase projects from other developers if conditions warrant, is to provide "a reliable yield" from ongoing power sales. Atlantic's management is in talks with potential financiers and advisors. It expects to give more details in the near future. The statement said that financing of the yiledco would be direct and would cause no dilution to Atlantic shareholders.

Yieldcos are becoming an increasingly popular financing platform in the renewables industry. Already, major solar and wind energy companies such as SunEdison, First Solar, SunPower, PNE Wind and Canadian Solar have embraced the concept.

Atlantic also said it has completed a 160-kW commercial rooftop solar installation in the Canadian province of Ontario. The output will be sold under the province's feed-in-tariff (FiT) programme.

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