Innergex Renewable Energy has closed the CAN$117.3 million nonrecourse project financing for its Stardale solar project in East-Hawkesbury, Ontario, Canada. The company said the financing consists of a total facility of CAN$117.3 million (including a CAN$5.6 million facility for the issuance of a letter of credit) to fund the construction costs of the project. On meeting certain criteria after the start of commercial operation, the facility will convert into an 18-year amortizing term loan.
The financing has been arranged by the Bank of Tokyo Mitsubishi UFJ, acting as the lead arranger and administrative agent, and is expected to be syndicated to a limited number of banks. Concurrently with the closing, Innergex entered into a financial derivative instrument in order to fix the interest rate from the start of commercial operation until the maturity of the loan.
Construction of the project began in November 2010 and is expected to be completed during the first quarter of 2012, on time and budget. Stardale is being developed on two parcels of land totalling 300 acres, located in Russell County, and consists of a ground-mounted PV array system, which will include a total of approximately 144,060 SolarWorld SW 230 polycrystalline PV modules and 54 inverters, for a total installed capacity of 27MW (AC) (33.2MW [DC]). The forecast annual electric output is estimated at 39GWh, enough to provide electricity to approximately 2,600 homes.
All of the energy delivered by the project will be sold pursuant to three Renewable Energy Standard Offer Program contracts with the Ontario Power Authority. The electricity rate payable under the RESOP contracts is fixed at $420 per MWh; the contracts have 20 -year terms which will begin on Stardale's commercial operation date.