Innergex Renewable Energy has signed an agreement to acquire TransCanada’s 62% interest in five wind farms in the Gaspé peninsula in Quebec for approximately C$630m ($484m).
The five wind farms include Baie-des-Sables, Carleton, Gros-Morne, L’Anse-à-Valleau, and Montagne Sèche, collectively known as Cartier wind farms.
Additionally, Innergex has agreed to acquire a 50% stake in the operating entities of the wind farms (Cartier operating entities).
Currently, Innergex owns the remaining stake in Cartier wind farms, as well as in Cartier operating entities.
Innergex president and CEO Michel Letellier said: “By acquiring TransCanada’s interest in the Cartier wind farms and Cartier operating entities, not only do we add 366MW of net installed capacity to our portfolio, but we look forward to welcoming a team with the unique expertise to advance our future growth projects.
“We have always considered Cartier wind farms as an integral part of our business and the Transaction fits seamlessly with our growth strategy and allows us to expand in Quebec, the province where Innergex laid its roots.
“With this acquisition, our breakthrough in Chile and our projects under construction or in development, not only will we reach our goal of net 2,000MW but we should reach net 2,500MW by 2020. We are proud to solidify our position as a leader in the Canadian renewable energy market.”
The five wind farms will have an aggregated gross installed capacity of 590MW, and the average annual power generation is expected to be around 1,780GWh, which will be enough to power nearly 80,900 Quebec households.
All of the electricity produced by these wind farms is sold under existing power purchase agreements (PPA’s) at fixed prices.
To finance this acquisition, Innergex has obtained commitments from two Canadian banks, which include BMO Capital Markets and TD Securities.
The 62% interest in Cartier wind farms is being acquired on a debt-free basis, and Innergex intends to find a partner to acquire a stake in Cartier wind farms in order to increase shareholders’ return while optimising the investment structure.
Innergex noted that it will keep 100% ownership interest in Cartier operating entities.
Subject to regulatory approvals and customary closing conditions, the completion of Cartier wind farms and operating entities’ acquisition is expected to take place in the fourth quarter of this year.