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Innergex, Desjardins pension acquire French wind deal

by Jody Barhanovich

Innergex Renewable Energy and Desjardins Group Pension Plan have finalized an agreement with French-based Velocita Energy Developments, an affiliate of Riverstone Holdings, to purchase three wind projects in France.

The three wind farms are located in the Bourgogne-Franche-Comté region of France and consist of 43 GE wind turbines, each with a gross capacity of 2.78 megawatts that will be operated by the wind turbine manufacturer under an 18-year operation and maintenance contract. The aggregated installed capacity will be 119.5 megawatts and the average annual power generation is expected to reach 278,200 megawatts/hour at commercial operation, enough to power about 58,400 French households.

As of today, 81 percent of total megawatts have already reached mechanical completion and the remaining turbines are in the late stage of construction with full commissioning expected in phases until the end of the year.

Innergex will have a 69.55 percent interest in the wind farms and Desjardins Group Pension Plan will own the remaining 30.45 percent.

“France is an exciting market as it has adopted vigorous climate change targets and has a potential to double its onshore wind capacity by 2023,” says Michel Letellier, president and chief executive officer of Innergex.

The purchase price of the equity is approximately €51.4 million ($56.5 million), subject to certain adjustments. Innergex’s net share of the purchase price will amount to about €31.3 million ($34.4 million) and will be paid through available funds under its corporate revolving credit facility. Nonrecourse debts related to the projects, which are already in place, will amount to €174.3 million ($191.5 million) at the end of construction and will remain at the project level.

Innergex expects to complete the acquisition of the three wind projects by the end of second quarter 2017, subject to customary closing conditions.

 

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