Innergex Renewable Energy Inc. (TSX: INE), based in Longueuil, Quebec, has announced the closing of a non-recourse bridge loan of $142 million CAD ($100 million USD) with First Citizens Bank to support the finalization of the Hale Kuawehi project in Hawaii. This financing will primarily be used to repay the company’s revolving credit facility, thereby reducing its short-term leverage.
With the construction phase now complete, the solar project has entered its final commissioning and testing stages. This phase includes the operational launch of solar panels, inverters, and energy storage systems. According to Innergex, these final steps will bring the project to full operational status by the first quarter of 2025.
A secured energy partnership
Once operational, the Hale Kuawehi project will benefit from a 25-year Power Purchase Agreement (PPA) with Hawaii Electric Light Company. This contract aims to secure stable long-term revenues for the project’s operation.
The project is also eligible for the federal Investment Tax Credit (ITC), covering up to 30% of eligible costs. This mechanism supports the overall financing structure without directly impacting the company’s equity.
Optimizing financial structure
Michel Letellier, President and CEO of Innergex, stated that this financing allows the company to reduce its short-term debt while maintaining financial flexibility for future developments.
The bridge loan will be repaid after establishing long-term non-recourse financing, once the project reaches full operational capacity. This approach ensures asset security without direct recourse to Innergex’s other activities.
Technical progress
The successful activation of the substation and interconnection points with the local power grid marks a key milestone in the project’s advancement. These connections ensure the future production and distribution capacity of the site.
The Hale Kuawehi project remains on schedule, with commercial operations expected in the first quarter of 2025. Innergex continues to closely monitor the commissioning tests to ensure technical and operational compliance.
