Innergex acquires 60 MW solar portfolio in Ontario

Innergex Renewable Energy recently completed the  acquisition of the 60 MW Sault Ste. Marie solar portfolio northwestern Ontario, Canada for a purchase price of $50.2 million, along with the assumption of $169.5 million of existing debt.

“The acquisition of Sault Ste Marie supports our strategy to increase geographic and technological diversification, while benefiting from reliable, quality cash flows through its attractive contracted profile,” said Michel Letellier, president and chief executive officer of Innergex. “We are also pleased to enter this part of Ontario where heavy industries are looking to decarbonize, which could bring additional opportunities for Innergex in the long term.”

The portfolio includes the Sault Ste. Marie 1, 2, and 3 facilities, which were all commissioned between 2010 and 2011 and have had an excellent operating track record since then, with a historical 5-year weighted-average availability of 98.5%, according to Innergex.

The Independent Electricity System Operator signed on as the off-taker for all three facilities under long-term power purchase agreements.

Innergex reports that the assets are expected to generate annual revenues of approximately $33.1 million in 2023, with operating, general and administrative expenses of approximately $3.1 million during the same period. Innergex expects the portfolio to be immediately accretive based on these historical averages.

Canadian developer Innergex develops, acquires, owns and operates hydroelectric facilities, wind farms, solar farms and energy storage facilities, in Canada, the United States, France and Chile and manages a portfolio of assets currently consisting of interests in 87 operating facilities with an aggregate net installed capacity of 3.7 GW and an energy storage capacity of 159 MWh, including 40 hydroelectric facilities, 35 wind facilities, 11 solar facilities and 1 battery energy storage facility.

Last year the Hawaii Supreme Court upheld a utility’s approval of a power purchase agreement for the Paeahu Solar plant, owned by Innergex. The agreementhad been challenged by  a Maui community group that alleged that the solar facility would cause potential harm with water runoff. The Supreme Court found that the Coalition did not show how the project would exacerbate water runoff or damage native plants and ultimately found that the PUC had properly evaluated allegations of harm and had  lawfully approved” the utility’s agreement to purchase energy from the Paeahu solar plant.