Innergex wins 150MW Quebec PPA
Canadian renewables developer Innergex has nailed down a power purchase agreement with Hydro-Québec Distribution for the 150MW Mesgi-g Ugju’s’n wind farm it is developing alongside indigenous communities in Québec’s Gaspé Peninsula.
The 20-year, inflation-linked PPA means Toronto-listed Innergex should kick off pre-construction activities such as wood-clearing later this year, enter full construction in 2015, and bring the project into full operation by late 2016.
Negotiations with potential turbine suppliers are underway, Innergex says.
Late last year the developer commissioned the Viger-Denonville wind farm in Québec using REpower turbines.
Innergex jointly owns the rights to the C$365m ($325m) Mesgi-g Ugju’s’n project on a 50:50 basis with three indigenous Mi-gmaq communities in Québec.
The 515GWh the wind farm is expected to generate each year will bring in an estimated C$55m in annual revenues.
Innergex will take 75% of the cash flow generated in the first year, falling to no more than 40% by the project’s 16th year of operation – with the local communities able to buy larger stakes earlier in the project's life cycle should they choose to do so.
Profit-making Innergex, which is ballooning its wind portfolio to match its hydro assets, last December signed a letter of intent with a First Nations tribe that could see it build the 210MW Nulki Hills wind farm by 2018 – its first in British Columbia.