Canadian Power Holdings has agreed to acquire the Okanagan Wind platform in British Columbia, for an undisclosed sum.
As per the terms of the agreement, Canadian Power, part of CK Group, will fully acquire two wind farms in the Okanagan region. It will also assume debt from InstarAGF Asset Management.
Canadian Power CEO Derek Goodmanson said: “We are excited to be acquiring CK Group’s first renewable energy project in Canada and look forward to finding other such opportunities for the group as we work to expand our footprint.
“We look forward to working with the team at Okanagan Wind, as well as the community and First Nations partners.”
Okanagan Wind entered the commercial operations phase in 2017 and has a combined capacity of 30MW. The wind generation platform consists of the Pennask Wind Farm and the Shinish Creek Wind Farm.
The energy generated by the wind facilities will be sold to British Columbia Hydro and Power Authority under an inflation-linked power purchase agreement.
Canadian Power said that it will honour Okanagan Winds Impact Benefit Agreements with local First Nation communities.
These agreements provide access to jobs and annual benefit payments to the community, funds to support scholarships, and continuing roles such as environmental monitoring of the projects.
Developed by Zero Emission Energy Developments, the Okanagan Wind projects are sponsored by InstarAGF Asset Management, which owns and operates essential infrastructure assets.
For this transaction, CIBC Capital Markets provided financial advice and Stikeman Elliott acts as legal advisor to Canadian Power. The transaction is expected to be completed by the end of June this year.