LONGUEUIL, QC, Jan. 28, 2022 /CNW/ - Innergex Renewable
Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") announces
the acquisition of the 50.6 MW San Andrés solar farm located in the
Atacama desert in Northern Chile
for a total purchase price of US$25.7
million (CAN$32.7 million), net of cash. The facility,
which operates on a merchant basis, has a contract to sell
Non-Conventional Renewable Energy ("NCRE") credits linked to its
electricity generation to a major energy producer established in
Chile until 2034.
"Through this transaction, Innergex is continuing to implement
its growth in Chile," said
Michel Letellier, President and
Chief Executive Officer of Innergex. "The acquisition of San Andrés
will bring operational synergies possibilities with our
Salvador solar facility located in
the region. In addition, San Andrés has the potential for the
development of a battery energy storage system and, since the
connection to the grid is robust, it also offers opportunities for
future expansions."
Becoming Innergex's third solar facility in Chile, San Andrés is expected to produce a
gross estimated long-term average of 118.9 GWh per year. The
facility is expected to reach targeted Revenues1 of
US$5.5 million (CAN$7.0 million) in
its first full year, of which US$1.3
million (CAN$1.7 million) is derived from the sale of the
NCRE of the facility under contract until 2034 and US$0.8 million (CAN$1.0 million) from the
capacity payment.
The total purchase price of US$25.7 million (CAN$32.7million) net
of cash, which is equivalent to the enterprise value as the project
is free of debt, was fully financed with cash on hand in
Chile and corporate revolving
credit facility draws.
About Innergex Renewable Energy Inc.
For over
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 80
operating facilities with an aggregate net installed capacity of
3,152 MW (gross 3,852 MW) and an energy storage capacity of 150
MWh, including 40 hydroelectric facilities, 32 wind farms and 8
solar farms. Innergex also holds interests in 9 projects under
development, two of which are under construction, with a net
installed capacity of 171 MW (gross 209 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
7,281 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.
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1 Gross estimated long-term average
and targeted Revenues, targeted operating expenses are
forward-looking information within the meaning of applicable
securities laws. Please refer to the "Cautionary Statement
Regarding Forward-Looking Information" section of this press
release for more information.
|
Cautionary Statement Regarding Forward-Looking
Information
To inform readers of the Corporation's future
prospects, this press release contains forward-looking information
within the meaning of applicable securities laws ("Forward-Looking
Information"), including the Corporation's targeted financial
performance, project acquisitions, and strategic, operational and
financial benefits and accretion expected to result from such
acquisitions, business strategy, future development and growth
prospects and strategic priorities, and other statements that
are not historical facts. Forward-Looking Information can generally
be identified by the use of words such as "approximately", "may",
"will", "could", "believes", "expects", "intends", "should",
"would", "plans", "potential", "project", "anticipates",
"estimates", "scheduled" or "forecasts", or other comparable terms
that state that certain events will or will not occur. It
represents the projections and expectations of the Corporation
relating to future events or results 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 for both IFRS and non-IFRS measures, including information
regarding the Corporation's gross estimated long-term average
production and targeted Revenues and other statements that are not
historical facts. Such information is intended to inform readers of
the potential financial impact of expected results, and of the
potential financial impact of completed and future acquisitions.
Such information may not be appropriate for other purposes.
Forward-looking Information is based on certain key assumptions
made by Innergex, including, without restrictions, assumptions
concerning project performance, contractual revenues and
electricity merchant prices. Although Innergex believes that the
expectations and assumptions on which such forward-looking
information is based are reasonable, under the current
circumstances, readers are cautioned not to rely unduly on this
forward-looking information as no assurance can be given that they
will prove to be correct. The forward-looking information contained
in this press release is made as of the date hereof and Innergex
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 hereof, unless so required
by law.
For more information on the risks and uncertainties that may
cause actual results or performance to be materially different from
those expressed, implied or presented by the forward-looking
information or on the principal assumptions used to derive this
information, please refer to the "Forward-Looking Information"
section of the Management's Discussion and Analysis for the three-
and nine-month periods ended September 30,
2021.
Principal
Assumptions
|
Principal Risks
and Uncertainties
|
Gross Estimated
Long-Term Average
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 including for solar energy the historical solar
irradiation conditions, panel technology and expected solar panel
degradation. Other factors considered 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 resources and associated electricity
production
Variability in solar
irradiation resources
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
|
Targeted
Revenues
Targeted annual
revenues are estimated by multiplying the LTA with forward market
prices, which are based on observable market data or constructed
using various assumptions depending on historical market prices,
supply, demand and congestion volumes observed, as well as
econometric models. The targeted Revenues also take into
consideration the sale of Non-Conventional Renewable Energy credits
of the facility under contract.
|
See principal assumptions, risks and uncertainties identified under
"Gross Estimated Long-Term Average"
Revenues from certain
facilities will vary based on the market (or spot) price of
electricity
Fluctuations
affecting prospective power prices
Changes in general
economic conditions
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SOURCE Innergex Renewable Energy Inc.