Canadian Hydro Developers Inc. has entered into a definitive agreement to acquire the rights to a 4,400 MW offshore wind prospect in Ontario from Wasatch Wind Inc., a private U.S.-based renewable energy company. The agreement is subject to customary due diligence, and the terms are confidential.
The offshore wind prospect will be located approximately five to 30 kilometers offshore in one of the Great Lakes bordering Ontario, near available transmission interconnection. It has an estimated net capacity factor of 40%. The prospect is eligible for the Ontario Green Energy Act's feed-in-tariff 20-year contract at a price of C$190/MWh, subject to 100% of Ontario consumer price index (CPI) inflation from contract signing to commercial operations and 20% of Ontario CPI annually thereafter.
Canadian Hydro anticipates that the offshore wind prospect will be built in stages, with the first 400 MW to 500 MW to come online by the fourth quarter of 2014. Regulatory and environmental permits and approvals, site release from the Ontario Ministry of Natural Resources and financing are required prior to proceeding with construction.
SOURCE: Canadian Hydro Developers Inc.