First Phase Of Red Lily Wind Project Producing Power


Algonquin Power & Utilities Corp. (APUC) has achieved commercial operation of the first phase of its Red Lily wind project pursuant to the power purchase agreement (PPA) with SaskPower. The 26.4 MW project, located in southeastern Saskatchewan, was completed ahead of schedule and is now generating renewable power.

The project consists of 16 Vestas V82 wind turbine generators. The total capital cost of the facility was approximately C$69 million. The PPA with SaskPower is for a 25-year term, with an annual inflation adjustment applied throughout the term.

APUC's electrical generation subsidiary Algonquin Power Co. provided services related to the development and construction of the facility and will continue providing ongoing operation and supervision services to the facility.

APUC's commitment in Red Lily I has been structured initially as a debt investment with total returns to APUC being a combination of interest payments and fees. APUC retains an option to formally exchange its debt investment for a 75% equity interest in the entity, which owns the facility in 2016.

Additional land rights have been secured for a second phase of the project, which, should it proceed, would provide an additional 106 MW of generating capacity.

SOURCE: Algonquin Power & Utilities Corp.

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