Innergex to acquire 60-MW Ontario solar portfolio

January 23 (Renewables Now) - Canada’s Innergex Renewable Energy Inc (TSE:INE) said on Monday that it will acquire a 60-MW portfolio containing three operational and fully contracted solar farms in the province of Ontario.

It said it had struck a definitive agreement with Toronto-based investment firm Fengate Asset Management to acquire the package for a purchase price of CAD 50.2 million (USD 37.4m/EUR 34.5m) and assume CAD 169.5 million of existing debt.

Innergex will finance the acquisition with draws from its existing revolving credit facility. It expects to finalise the transaction in the first quarter of 2023 once regulatory and other customary closing conditions are met.

With that, the Quebecois renewables company will own a 100% interest in the Sault Ste. Marie portfolio and its three solar farms -- the 20-MW SSM1, 30-MW SSM2 and 10-MW SSM3. The plants were commissioned between 2010 and 2011.

All three SSM parks operate under long-term Renewable Energy Standard Offer Program power purchase agreements (PPAs) with the Independent Electricity System Operator. Their PPAs will expire in close to nine years on average.

Innergex expects the portfolio to bring annual revenues of around CAD 33.1 million in 2023, anticipating operating, general and administrative expenses of some CAD 3.1 million over the same period.

“This is our first acquisition in Canada since 2018, and we are excited to add this collection of high-performing fully contracted solar assets to our portfolio for additional and reliable Canadian dollar cash flows,” said Michel Letellier, president and CEO of Innergex.

(CAD 1.0 = USD 0.746/EUR 0.688)