The Canadian Government has agreed to provide funding benefit towards construction of the East Toba and Montrose Creek projects being developed in British Columbia by Plutonic Power Corp.
Plutonic said the contribution would come in the form of an incentive of Can$10/MWh (US$7.89/MWh) over the first 10 years of operations. The contribution is being made available under the Government’s “ecoENERGY for Renewable Power” initiative.
The run-of-river plants will have an installed capacity of 196MW – comprising East Toba (123MW) and Montrose (73MW). They are expected to generate more than 725GWh (net) of electricity annually after they come into service, which is scheduled for mid-2010.
Plutonic is developing the plants in partnership with GE Energy Financial Services. Construction began in mid-2007 and the budget is approximately Can$660M (US$520M). The contractor of the turnkey works is Peter Kiewit Sons Co.
The funding pact on the scheme sees GE contributing to project finance in exchange for a 49% stake and 60% economic holding.
GE and Plutonic said last year that they planned to build on their co-operation on the scheme to step-up investments and developments to 1GW of installed capacity in British Columbia. The partners envisaged that approximately Can4B (US$3.15B) would be needed for the proposed run-of-river schemes in Upper Toba Valley (three plants) and Bute Inlet (18 plants).