OAKVILLE, Ont. – Algonquin Power & Utilities Corp. (TSX:AQN) says it plans to acquire a solar power project in eastern Ontario in a share purchase agreement.
Exact financial details of the agreement with privately held EffiSolar Energy Corp. for Cornwall Solar were not disclosed. EffiSolar is a Canadian-based company with projects in both Canada and the United States.
Cornwall Solar owns the rights to develop a 10-MWac solar project near Cornwall, Ont., which has been granted a feed-in tariff contract by the Ontario Power Authority, which has a 20-year term and a rate of $443 per megawatt hour. That is expected to produce initial annual revenues of approximately $6.2 million.
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The project will use a ground-mounted PV array system with expected annual generation of approximately 13,400 MWh, enough to provide electricity to approximately 1,000 homes.
Total capital cost of the project is targeted at approximately $45 million, including the consideration to be paid for the acquisition of the project.
In addition to Cornwall project, Algonquin Power has an option to acquire 10 additional Ontario-based solar projects in the feed-in tariff pipeline for an additional 100MWac.
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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,” said APUC chief executive Ian Robertson.
Through its distinct operating subsidiaries, APUC owns and operates a diversified portfolio of $1.1 billion of renewable electric generation and sustainable utility distribution businesses in North America.
Liberty Utilities Co., APUC’s regulated distribution utility business, provides regulated water and electric utility services to more than 120,000 customers with a portfolio of 22 water and electric utility systems.
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