Oakville, Ontario, March 21, 2011 — Algonquin Power and Utilities Corp. 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 selected by SaskPower for award of power purchase agreements 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., APUC's electric generation subsidiary.
The projects will be developed with support from Kineticor during the development phase, which is slated for completion in late 2013.
The total annual energy production for the projects is estimated to be 75,000 MW-hrs. While equipment selection and construction details remain to be finalized, it is expected that the capital cost to construct the projects will be about $55-$60 million, inclusive of acquisition costs.
The first year PPA rate is set at $101.98 per MWh for the first full year of operations, which APCo expects to occur in 2014, with an annual escalation provision of 2 percent over the expected 20-year term.
The projects are to be constructed near Morse, Saskatchewan, about 180 kilometers west of Regina and 400 km west of the Phase I Red Lily Wind Project.
It is contemplated that the projects will be situated on 1,120 acres of private lands, with additional land under lease or option in order to facilitate future expansion of the projects.