Canada’s Innergex Renewable Energy Inc (TSE:INE) and its First Nations partner Mi’gmawei Mawiomi Business Corporation (MMBC) have signed a 30-year power purchase agreement (PPA) for their jointly-owned 102-MW wind farm project in the Canadian province of Quebec.
Canadian electric utility Hydro-Quebec is the off-taker, signing a take-or-pay PPA indexed to 30% inflation for the Mesgi’g Ugju’s’n 2 (MU2) wind project, Innergex said on Wednesday.
The project was previously selected in Hydro-Quebec’s tender in mid-March this year.
MU2 is sited in the Avignon Regional County Municipality. The project is an extension of the 150-MW Mesgi’g Ugju’s’n wind farm, which has been operational in the same Quebecois municipality since late 2016.
Both the Mesgi’g Ugju’s’n wind farm and MU2 are a 50/50 partnership between Innergex and the three Mi’gmaq communities in Quebec — Gesgapegiag, Gespeg and Listuguj. MMBC is the economic arm of the three communities.
Innergex and MMBC estimated the project costs at some CAD 277.4 million (USD 203.8m/EUR 190.5m), which they expect to finance with long-term, non-recourse project debt for 75% to 80% of the amount. The remainder will be funded by sponsor equity to be shared equally among the partners.
Hydro-Quebec will reimburse interconnection costs and collector system at the commissioning of the MU2 wind farm, the Canadian renewables firm said.
Commissioning of MU2 is scheduled for 2026.
(CAD 1.0 = USD 0.735/EUR 0.687)