LONGUEUIL, QC, Nov. 28, 2019 /CNW Telbec/ - Innergex Renewable
Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") is pleased
to announce that a long-term power purchase agreement ("PPA") was
signed with an investment grade rated US corporation for its
200 MWAC Hillcrest solar photovoltaic project
located in Brown County, Ohio.
Sales under the PPA will start upon the facility reaching
commercial operation, which is expected in 2020.
"We are thrilled to have signed a PPA for all the electricity to
be produced at the Hillcrest solar project. We will soon move
forward with the project construction and further diversify our
renewable energy portfolio by adding more solar energy capacity,"
said Michel Letellier, President and
Chief Executive Officer of Innergex. "The solar energy market is
booming at the moment and technologies are improving fast. It is a
great market to evolve in as there are a lot of opportunities to
seize for Innergex."
Hillcrest will be located on approximately 2,100 acres of
existing pasture and agricultural land in Green Township, part of Brown County, north of Mount Orab, an area rich in solar resource and
adjacent to a point of interconnection in the regional transmission
system. The project will consist of a field with arrays of more
than 600,000 photovoltaic solar panels arranged in rows on
single-axis tracking foundations, for an estimated annual power
generation of about 410,000 MWh. An interconnection service
agreement is in place.
Innergex is required not to disclose the terms and conditions of
the agreement until the other party has disseminated the
information.
About Innergex Renewable Energy Inc.
The
Corporation is an independent renewable power producer which
develops, acquires, owns and operates hydroelectric facilities,
wind farms and solar farms. As a global corporation, Innergex
conducts operations in Canada,
the United States, France and Chile. Innergex manages a large portfolio of
assets currently consisting of interests in 68 operating
facilities with an aggregate net installed capacity of
2,588 MW (gross 3,488 MW), including
37 hydroelectric facilities, 26 wind farms and five solar
farms. Innergex also holds interests in six projects under
development, one of which under construction, with a net installed
capacity of 296 MW (gross 378 MW), and prospective
projects at different stages of development with an aggregate gross
capacity totalling 7,767 MW. Respecting the environment and
balancing the best interests of the host communities, its partners,
and its investors are at the heart of the Corporation's development
strategy. Its approach for building shareholder value is to
generate sustainable cash flows, provide an attractive
risk-adjusted return on invested capital and to distribute a stable
dividend. Innergex Renewable Energy Inc. is rated BBB- by
S&P.
Forward-Looking Information Disclaimer
To
inform readers of the Corporation's future prospects, this press
release contains forward-looking information within the meaning of
applicable securities laws, including, but not limited to,
Innergex's business strategy, future development and growth
prospects, business outlook, objectives, plans and strategic
priorities, and other statements that are not historical facts
("Forward-Looking Information"). Forward-Looking Information can
generally be identified by the use of words such as
"approximately", "may", "will", "could", "believes", "expects",
"intends", "should", "plans", "potential", "project",
"anticipates", "estimates", "scheduled" or "forecasts", or other
comparable terminology that state that certain events will or will
not occur. It represents the estimates, projections and
expectations of the Corporation relating to future events, results
or developments as of the date of this press release.
Forward-Looking Information includes future-oriented financial
information or financial outlook within the meaning of securities
laws, such as expected production, projected revenues and projected
Adjusted EBITDA, to inform readers of the potential financial
impact of expected results, of the expected commissioning of
Development Projects, of the potential financial impact of
completed and future acquisitions and of the Corporation's ability
to sustain current dividends and to fund its growth. Such
information may not be appropriate for other purposes.
Since forward-looking statements address future events and
conditions, they are by their very nature subject to inherent risks
and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors and risks.
These include, but are not limited to, the risks associated with
the renewable energy industry in general such as execution of
strategy; ability to develop projects on time and within budget;
capital resources; derivative financial instruments; qualification
for PTCs and ITCs; current economic and financial conditions;
hydrology and wind regimes, solar irradiation; construction, design
and development of new facilities; performance of existing
projects; equipment failure; interest rate and refinancing risk;
currency exchange rates, variation in merchant price of
electricity, financial leverage and restrictive covenants; and
relationships with public utilities. Readers are cautioned that the
foregoing list of factors is not exhaustive. Additional information
on these and other factors that could affect the operations or
financial results of Innergex are included in Innergex's annual
information form available on SEDAR at www.sedar.com.
Forward-Looking Information in this press release is based on
certain key expectations and assumptions made by the Corporation.
The following table outlines Forward-Looking Information contained
in this press release, the principal assumptions used to derive
this information and the principal risks and uncertainties that
could cause actual results to differ materially from this
information.
Principal
Assumptions
|
Principal Risks and
Uncertainties
|
Expected
production
For each facility,
the Corporation determines a long-term average annual level of
electricity production ("LTA") over the expected life of the
facility, based on engineers' studies that take into consideration
a number of important factors: for solar energy, the historical
solar irradiation conditions, panel technology and expected solar
panel degradation. Other factors taken into account include,
without limitation, site topography, installed capacity, energy
losses, operational features and maintenance. Although production
will fluctuate from year to year, over an extended period it should
approach the estimated LTA.
|
Improper assessment
of solar and associated electricity production
Variability in solar
irradiation
Equipment supply
risk, including failure or unexpected operations and maintenance
activity
Natural disasters and
force majeure
Regulatory and
political risks affecting production
Health, safety and
environmental risks affecting production
Variability of
installation performance and related penalties
Availability and
reliability of transmission systems
Litigation
|
Estimated project
costs, expected obtainment of permits, start of construction, work
conducted and start of commercial operation for Development
Projects or Prospective Projects
For each Development
Project and Prospective Project, the Corporation may provide (where
available) an estimate of potential installed capacity, estimated
project costs, project financing terms and each project's
development and construction schedule, based on its extensive
experience as a developer, in addition to information directly
related to incremental internal costs, site acquisition costs and
financing costs, which are eventually adjusted for the projected
costs and construction schedule provided by the engineering,
procurement and construction ("EPC") contractor retained for the
project.
The Corporation
provides indications based on assumptions regarding its current
strategic positioning and competitive outlook, as well as
scheduling and construction progress, for its Development Projects
and its Prospective Projects, which the Corporation evaluates based
on its experience as a developer.
|
Uncertainties
surrounding development of new facilities
Performance of major
counterparties, such as suppliers or contractors
Delays and cost
overruns in the design and construction of projects
Ability to secure
appropriate land
Obtainment of
permits
Health, safety and
environmental risks
Higher-than-expected
inflation
Equipment
supply
Interest rate
fluctuations and financing risk
Risks related to U.S.
PTCs and ITCs, changes in U.S. corporate tax rates and availability
of tax equity financing
Regulatory and
political risks
Natural disaster
Relationships with
stakeholders
Foreign market growth
and development risks
Outcome of insurance
claims
|
Although the Corporation believes that the expectations and
assumptions on which Forward-Looking Information is based are
reasonable, readers of this press release are cautioned not to rely
unduly on this Forward-Looking Information since no assurance can
be given that they will prove to be correct. The Corporation does
not undertake any obligation to update or revise any
Forward-Looking Information, whether as a result of events or
circumstances occurring after the date of this press release,
unless so required by legislation.
SOURCE Innergex Renewable Energy Inc.