Government-owned electricity generation company Ontario Power Generation (OPG) has signed an agreement to acquire a portfolio of three combined-cycle natural gas-fired plants from TC Energy’s wholly owned subsidiary TransCanada Energy for $2.18bn (C$2.87bn).
OPG will acquire full ownership of Napanee Generating Station (900MW), Halton Hills Generating Station (683MW) and TC Energy’s 50% stake in the 550MW Portlands Energy Centre.
OPG president and CEO Ken Hartwick said: “The role that natural gas plays in maintaining system reliability has become even more important with the addition of intermittent wind and solar generation in recent years.
“Natural gas is the partner or enabler of renewable energy, providing the flexibility required to ensure a reliable electricity system.”
Upon completion of the sale, TC Energy’s portfolio of energy infrastructure assets will include investments in six low-emission natural gas-fired power plants as well as the Bruce Power nuclear facility. This is expected to result in a combined generating capacity of about 4,200MW.
As part of a life-extension programme at Bruce Power facility, TC Energy will invest about C$2.2bn by 2023 with the potential for another C$6bn under a long-term agreement with the Ontario Independent Electricity System Operator.
Completion of the deal is subject to receipt of standard regulatory approvals.
In June 2018, OPG signed a purchase and sale agreement with affiliates of Canadian Utilities to acquire the remaining 50% interest in the 560MW combined-cycle natural gas-fired Brighton Beach Generating Station, where it already holds 50% stake.
During the same month, OPG agreed to acquire US-based hydropower company Cube Hydro for an enterprise value of $1.2bn.