Renewable energy developer Innergex has signed an agreement to acquire 62% stake in five Cartier wind farms in Quebec totalling 590MW and 50% of stake in Cartier operating entities from TransCanada for $630m.
Image: TransCanada's Cartier Wind farm. Photo: Courtesy of TransCanada
The five wind farms are located in the Gaspé peninsula in Quebec and are known as Baie-des-Sables, Carleton, Gros-Morne, L’Anse-à-Valleau and Montagne Sèche. Currently, Innergex holds the remaining stake in the both the Cartier wind farms and Cartier operating entities.
These wind farms generate nearly 1780GWh of clean power annually, which is enough to power 80,900 Quebec households. All of the electricity generated from these wind farms is sold under existing power purchase agreements with Hydro-Québec, for initial terms of 20 years, ending between 2026 and 2032.
The company also intends to find a partner which can acquire stake in Cartier wind farms. But, it will retain 100% ownership in the Cartier operating entities.
Innergex president and CEO Michel Letellier said: “By acquiring TransCanada’s interest in the Cartier Wind Farms and Cartier Operating Entities, not only do we add 366MW of net installed capacity to our portfolio, but we look forward to welcoming a team with unique expertise to advance our future growth projects.
“We have always considered Cartier Wind Farms as an integral part of our business and the Transaction fits seamlessly with our growth strategy and allows us to expand in Quebec, the province where Innergex laid its roots.
“With this acquisition, our breakthrough in Chile and our projects under construction or in development, not only will we reach our goal of net 2GW but we should reach net 2.5GW by 2020. We are proud to solidify our position as a leader in the Canadian renewable energy market.”
The acquisition of Cartier Wind Farms and Cartier Operating Entities is expected to be completed in the fourth quarter of 2018.
The transaction is subject to regulatory approvals, key third party consents and other customary closing conditions.