Innergex Renewable Energy Inc. (TSX: INE) (“Innergex” or the “Corporation”) acquired all the Class A shares of its 138 MW Mountain Air wind portfolio in Idaho, in the United States, for a total consideration of US$47.5 million (CAN$64.4 million) from its tax equity partner, an affiliate of MetLife Investment Management. These shares represent the remaining 37.75% of the outstanding shares of the portfolio not already owned by Innergex.
“We are pleased to now have the Mountain Air wind portfolio as a wholly owned entity,” said Michel Letellier, President and Chief Executive Officer of Innergex. “This transaction not only represents a natural continuation of the path we embarked on when we first acquired a stake in the Mountain Air portfolio in 2020, but also an opportunity to generate additional accretive cash flows while increasing Innergex’s contracted wind profile in the United States.”
The Mountain Air wind portfolio comprises six 23 MW wind farms, Cold Springs, Desert Meadow, Hammett Hill, Mainline, Ryegrass and Two Ponds. These wind assets, on a consolidated basis, are expected to generate annual revenues of approximately US$29.7 million (CAN$40.3 million) in 2023, while operating, general and administrative expenses are expected to reach US$7.1 million (CAN$9.6 million) during the same period.
The acquisition of the remaining shares of Mountain Air will mainly be financed with the proceeds from the sale of safe harbor solar modules to be received during the first quarter of 2023. The modules were sold to an undisclosed party on December 8, 2022. The decision to sell these modules follows the publication of the Inflation Reduction Act (“IRA”) supporting renewable energy projects, allowing Innergex to secure tax incentives for its development project portfolio without the use of the safe harbor modules previously secured under the former tax incentive program.
All six wind farms have 10-year remaining power purchase agreements with the Idaho Power Company for 100% of the electricity as produced and at attractive escalating prices (US$90.0/MWh in 2023, escalating to US$120.9/MWh in 2032).
