Québec-based power producer Boralex is driving organic growth across Canada, the US, France, and the UK, fueled by a project pipeline totalling 8GW.
To achieve this, Boralex will invest CA$6.8 billion (US$4.96 billion) through 2030, with an additional CA$1.2 billion allocated to post-2030 projects. It targets a minimum levered internal rate of return (IRR) of 10%-12%, adjusted for regional, technological, and capital cost risks, and aims for a payout ratio of 20%-40% of discretionary cash flow.
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According to the firm, Canada – driven by growth in Quebec and Ontario – and France are key markets. However, the company plans to expand in select US states – such as solar PV in New York – and in the UK via a long-term growth platform. It aims to extend its average contract duration from 11 to 14 years by 2030 and double installed capacity every five years to stay on track for net-zero by 2050.
Patrick Decostre, CEO of Boralex, said that by developing the 8GW pipeline, the company would continue prioritising long-term power purchase agreements (PPAs) with its customer base. Furthermore, the planned increase in the weighted average remaining contract duration from 11 to 14 years would allow the company to implement competitive financing structures and reinvest secured funds into a growing number of profitable projects in the years ahead.
For 2030, Boralex is targeting a 100% organic growth, with operating income compound annual growth rate (CAGR) of 12%-14%, consolidated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of 7%-9%, and combined EBITDA of 8%-10%. It also projects 8%-10% CAGR in operating and discretionary cash flows per share.
Boralex’s 2030 Strategy builds on its 2021-2025 plan, favouring a lower-risk approach by focusing less on mergers and acquisitions (M&A) and more on replicable growth. Addressing the shareholders on Investors Day, Decostre said that the company was proud to present the results of its 2030 strategic planning.
