‘High-performing assets’: Solar farms in Sault sell for $50M

Innergex Renewable Energy to acquire 60MW solar portfolio from Fengate Asset Management

Three solar farms in Sault Ste. Mary has a new owner.

Innergex Renewable Energy Inc. announced that it has entered into an agreement to acquire a 60MW solar portfolio from Fengate Asset Management.

The price tag is $50.2 million, along with the assumption of $169.5 million of existing debt.

“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 chief executive officer of Innergex, which has its Canadian headquarters in Longueuil, Que.

“The portfolio adds to our geographical diversification and improves our asset mix by adding 60MW of solar capacity to our existing fleet.”

The Sault Ste. Marie 1, 2, and 3 facilities reached full commissioning between 2010 and 2011.

They have achieved an excellent operating track record since then, with a historical five-year weighted-average availability of 98.5%, the company said in a news release.

All three facilities are fully contracted under long-term power purchase agreements with the Independent Electricity System Operator. The solar farms have an average remaining contract life of close to nine years, the company said.

The farms are expected to generate annual revenues of about $33 million in 2023, while operating, general and administrative expenses are expected to reach just over $3 million during the same period, according to the release.

The acquisition is expected to close in the first quarter of 2023 and is subject to certain regulatory approvals in Canada, key third party consents and other customary closing conditions.

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