Boralex Inc. has entered into binding agreements with Enercon Canada Inc. to acquire all of Enercon’s economic interest in the 230 MW Niagara Region Wind Farm (NRWF) for a total cash consideration of C$238.5 million.
Extending across the Regional Municipality of Niagara, the Township of West Lincoln, the Town of Wainfleet and Haldimand County in Ontario, NRWF was commissioned on Nov. 2. The wind farm was developed by Enercon and Boralex in partnership with the Six Nations of the Grand River Band.
The project, comprising 77 Enercon E-101 turbines, will become Boralex’s largest asset. In addition, the acquisition will increase Boralex’s net installed capacity by 21% to 1,338 MW. The company says it has also increased its 2020 contracted capacity target from 1,650 MW to 2,000 MW.
Boralex’s board of directors has also authorized a 7.1% increase in the annual dividend from C$0.56 to C$0.60 per share; this will become effective when the deal closes.
Upon closing of the transaction, NRWF will also benefit from a 20-year feed-in tariff contract with Ontario’s Independent Electricity System Operator.
The transaction replaces and supersedes a Nov. 2 announcement in which Boralex said it would exercise its option to acquire a 25% economic interest in NRWF.
The deal has been unanimously approved by Boralex’s board of directors and remains subject to customary regulatory approvals and closing conditions. Closing is expected to occur in January.
“We are thrilled to announce today the acquisition of Enercon’s economic interest in NRWF, an asset that we know well, having coordinated its development, construction and commissioning with Enercon over the past two years,” notes Patrick Lemaire, president and CEO of Boralex. “This transaction is a great opportunity to further expand and diversify Boralex’s asset portfolio with a high-quality wind farm that will provide a stable and recurring cash flow stream.”