LONGUEUIL, QC, Sept. 17, 2020 /CNW Telbec/ - Innergex Renewable
Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") is pleased
to announce the signing of two 25-year power purchase agreements
that provide a fixed price with the Hawaiian Electric Company, Inc.
("Hawaiian Electric") for the electricity to be produced at the
Barbers Point and Kahana solar and
battery energy storage projects. Both projects have a proposed
commercial operation date of 2023. The agreements are subject to
approval by the Public Utilities Commission of Hawaii.
"We are excited to move forward on these two new solar and
battery energy storage projects in Hawaii. The energy storage market is not only
promising, it is paving the way to a sustainable and reliable
renewable energy powered future," said Michel Letellier, President and Chief Executive
Officer of Innergex. "Energy storage technologies have improved
significantly over the recent years, and it is changing the way
utilities can service their customers. With four solar and energy
storage projects under development in Hawaii, we are committed to becoming a strong
partner in managing the renewable energy needs of Hawaiian
Electric."
The two 25-year power purchase agreements are for dispatchable
energy, allowing Hawaiian Electric to dispatch the facilities as
they deem appropriate to maintain grid stability and maximise
renewable energy use on Oahu and
Maui islands.
The Barbers Point solar project
is a 15 MW facility with 4-hour (60 MWh) of battery energy storage
that will be located on the island of Oahu, while the Kahana solar project is a 20
MW facility with 4-hour (80 MWh) of battery energy storage to be
located on the island of Maui.
About Innergex Renewable Energy Inc.
For 30
years, Innergex has believed in a world where abundant renewable
energy promotes healthier communities and creates shared
prosperity. As an independent renewable power producer which
develops, acquires, owns and operates hydroelectric facilities,
wind farms, solar farms and energy storage facilities, Innergex is
convinced that generating power from renewable sources will lead
the way to a better world. Innergex conducts operations in
Canada, the United States, France and Chile and manages a large portfolio of
high-quality assets currently consisting of interests in 75
operating facilities with an aggregate net installed capacity of
2,742 MW (gross 3,694 MW) and an energy storage capacity of 150
MWh, including 37 hydroelectric facilities, 32 wind farms and six
solar farms. Innergex also holds interests in ten projects under
development, three of which are under construction, with a net
installed capacity of 555 MW (gross 629 MW) and an energy
storage capacity of 329 MWh, as well as prospective projects at
different stages of development with an aggregate gross capacity
totaling 6,871 MW. Its approach to building shareholder value is to
generate sustainable cash flows, provide an attractive
risk-adjusted return on invested capital and to distribute a stable
dividend.
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, use of proceeds of the Private
Placement; future development and growth prospects (including
expected growth opportunities under the Strategic Alliance),
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
Free Cash Flow, to inform readers of the potential financial impact
of expected results, of the expected commissioning of the
Corporation's development projects, of the potential financial
impact of pending, 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.
To combat the spread of the COVID-19, authorities in all regions
where we operate have put in place restrictive measures for
businesses. However, these measures have not impacted the
Corporation in a material way to date as electricity production has
been deemed essential service in every region where we operate. Our
renewable power production is sold mainly through PPAs to solid
counterparts. It is not excluded that current or future restrictive
measures might have an adverse effect on the financial stability of
the Corporation's suppliers and other partners, or on the
Corporation's operating results and financial position. The
issuance of permits and authorizations, negotiations and
finalizations of agreements with regards to development and
acquisition projects, construction activities and procurement of
equipment could be adversely impacted by the COVID-19 restrictive
measures.
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
|
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
storage 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
Ability to secure new
PPAs or renew any PPA
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 and
force majeure
Relationships with
stakeholders
Foreign market growth
and development risks
Outcome of insurance
claims
Social acceptance of
renewable energy projects
Ability of the
Corporation to execute its strategy of building shareholder
value
Failure to realize
the anticipated benefits of completed and future
acquisitions
Changes in
governmental support to increase electricity to be generated from
renewable sources by independent power producers
Restrictive measures
related to COVID-19
|
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 forward-looking
statements contained in this press release are made as of the date
hereof and Innergex undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, unless so required by
applicable securities laws.
SOURCE Innergex Renewable Energy Inc.