Enbridge Inc. has entered into an agreement to purchase additional ownership stakes in two Quebec wind projects from existing partner, EDF EN Canada Inc.
Under the agreement, which is expected to close in mid-October, Enbridge will invest approximately C$225 million to acquire an additional 17.5% stake in the 300 MW Lac Alfred wind project and an additional 30% stake in the 150 MW Massif du Sud wind project. Both transactions are subject to customary closing conditions.
Enbridge and EDF EN Canada became co-owners of the Lac Alfred project in December 2011 and expanded their partnership in December 2012 with the purchase of 50% of Massif du Sud. Lac Alfred reached commercial operation in two phases: Phase 1 (150 MW) in January 2013 and Phase 2 (150 MW) in August 2013. Massif du Sud reached commercial operation in January 2013.
After completion of this latest investment, Enbridge will hold 67.5% interest in Lac Alfred and 80% interest in Massif du Sud. EDF EN Canada will maintain a 20% ownership position in both facilities; the remaining 12.5% interest of Lac Alfred was acquired by the regional county municipalities of La Matapedia and La Mitis in September. EDF EN Canada will continue to provide management services to both projects, and EDF Renewable Services will continue to provide long-term operations and maintenance services.
‘With over 40 years of energy infrastructure investments in Quebec, our increased ownership of Massif du Sud and Lac Alfred further demonstrates our commitment to continue building on our strong relationships in the province,’ says Vern Yu, Enbridge's senior vice president of corporate development. "We've invested approximately C$3 billion in renewable energy assets over the past five years, and we plan to continue growing our renewable business with the objective of doubling capacity by 2017.
‘Additionally, this agreement further reflects the strength of our relationship with EDF EN Canada, with whom we've partnered on four jointly-owned wind projects since October 2012,’ notes Yu.
