Innergex takes full ownership of 590-MW wind portfolio in Quebec

The Cartier wind facility in Quebec. Source: TransCanada Corp

October 25 (Renewables Now) - Canada’s Innergex Renewable Energy Inc (TSE:INE) is now the sole owner of the five Cartier wind farms in the Gaspe peninsula in Quebec with a combined capacity of 590 MW.

As agreed in early August, the company bought the 62% stake in the wind portfolio that was held by natural gas transmission networks operator TransCanada Corp (TSE:TRP) for a total consideration of about CAD 620 million (USD 476m/EUR 417m), after adjustments. Innergex already held minority stakes in the assets before signing the deal.

The Cartier wind portfolio includes the 109.5-MW Baie-des-Sables, 109.5-MW Carleton, 211.5-MW Gros-Morne, 100.5-MW L'Anse-a-Valleau and 58.5-MW Montagne Seche wind parks. Each facility has an existing power purchase agreement (PPA) with Hydro-Quebec, ending between 2026 and 2032.

The purchase of TransCanada’s interest in the portfolio increases Innergex’s net capacity by 366 MW. The buyer has obtained two short-term credit facilities -- one of CAD 400 million and one of CAD 228 million -- to cover the purchase price and transaction costs. The larger facility is expected to be repaid from the proceeds of a non-recourse long-term financing that is currently being negotiated.

"Our discussions with financial institutions to put in place a non-recourse long-term financing at the projects level look promising and could be above the CAD 400 million that we first expected to obtain,” stated Michel Letellier, president and CEO of Innergex. He added that the company anticipates closing the financing in the coming months.

(CAD 1.0 = USD 0.768/EUR 0.673)

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