Wednesday, March 2, 2011

Algonquin announces commercial operation of Red Lily Wind Project in Saskatchewan

Renewable energy development continues to power forward in wind-resource rich Saskatchewan with Canadian developer, Algonquin Power & Utilities Corp. ("Algonquin") announcing the achievement of commercial operation ("Commercial Operation") of the 26.4 MW Phase I Red Lily Wind Project ("Red Lily I") in south-eastern Saskatchewan pursuant to the Power Purchase Agreement ("PPA") with SaskPower. The project was completed ahead of schedule and is now successfully generating renewable power.

Red Lily I consists of 16 Vestas V82 wind turbine generators. The total capital cost of the facility was approximately $69 million CAD. Red Lily I enjoys an excellent wind resource, which under the power purchase agreement with SaskPower is expected to generate 2011 revenues of $7.5 million CAD and full year 2012 revenues of $8 million CAD. The power purchase agreement with SaskPower is for a 25 year term, with an annual inflation adjustment applied throughout the term.

Algonquin's commitment in Red Lily I has been structured initially as a debt investment with total returns to Algonquin being a combination of interest payments and fees. Algonquin retains an option to formally exchange its debt investment for a 75% equity interest in the entity which owns the facility in 2016.

In addition to Red Lily I, additional land rights have been secured for a second phase of the project, which, should it proceed, would provide an additional 106 MW of generating capacity in Saskatchewan.

The full Press Release is available on Algonquin's website:

In addition to potash, uranium, oil, gas, coal, diamonds and gold I think it's time to add wind to the growing list of world-class natural resources in Saskatchewan.

I wonder which major PV developer will be the first to realize that Saskatchewan also has the richest PV resource in Canada? The PV potential in Saskatchewan far exceeds that in Ontario where 400 MW of PV has been already awarded contracts under the Ontario FIT.

1 comment:

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