Algonquin Power has entered into a share purchase agreement with EffiSolar Energy to buy all the issued and outstanding shares in Cornwall Solar and its 110MW project pipeline. This pipeline is comprised of one feed-in tariff approved 10MW system in Cornwall, Ontario and 10 others in the province that are still awaiting subsidy sanctioning from the Ontario Power Authority.
Following the completion of the necessary regulatory submissions and approvals, work on the ground-mounted Cornwall array, spanning two sites and 138 acres, will begin in the second half of 2012. When completed in early 2013 it will generate 13,400MWh of electricity and CAN$6.2 million of revenue a year. Including the acquisition fee, the total cost of the development, which has been awarded a 20-year FiT contract at a rate of CAN$443/MWh, is estimated at CAN$45 million.
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“We have been actively pursuing the expansion of our renewable energy portfolio into the solar sector and are very pleased with the announcement of this first solar project,” Algonquin’s CEO, Ian Robertson, said. “This acquisition reinforces our strategic focus on continued investment in renewable energy in North America, and will add a stable and predictable source of earnings and cash flow to our power generation fleet.”
The share takeover is still subject to certain regulatory approvals and other closing conditions. Closing is expected to be finalised by the end of 2011.