Algonquin Power & Utilities Corp. (APUC) has executed an asset purchase agreement with Kineticor Renewables Inc. to acquire all of the assets related to two proposed adjacent 10 MW wind energy development projects in Saskatchewan.
The projects were awarded power purchase agreements (PPAs) by SaskPower in accordance with the SaskPower Green Options Partners Program in May 2010. Upon SaskPower's approval and execution of the PPAs, Kineticor will assign the PPAs to Algonquin Power Co. (APCo), APUC's electric generation subsidiary.
The projects will be developed with support from Kineticor during the development phase, which is expected to be completed in late 2013.
While equipment selection and construction details remain to be finalized, it is expected that the capital cost to construct the projects will be approximately C$55 million to C$60 million.
The PPA rate is set at C$101.98/MWh for the first full year of operations, which APCo expects to occur in 2014, with an annual escalation provision of 2% over the expected 20-year term.