Mountain Air, the wind power portfolio in Idaho, U.S.A. becomes wholly-owned by Innergex Renewable Energy.
An acquisition finalized
Mountain Air, in fact, is the subject of the purchase of the remaining 37.75% of the outstanding shares in its portfolio. These shares were not previously owned by Innergex. The total financial consideration represents $47.5 million or C$64.4 million.
Michel Letellier, President and Chief Executive Officer of Innergex, said:
“We are pleased to now have the Mountain Air wind portfolio as a wholly-owned entity. This transaction not only represents a natural continuation of the path we took when we first acquired an interest 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 U.S.”
Mountain Air’s wind portfolio includes six 23MW wind farms. The six parks are: 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 $29.7 million or C$40.3 million in 2023. Operating, general and administrative expenses are expected to reach $7.1 million. This represents $9.6 million Canadian during the same period.
The effects of the Inflation Reduction Act
The acquisition of the remaining shares of Mountain Air is financed by the proceeds from the sale of safe harbour solar modules. In 2022, Mountain Air sold its shares due to the release of theInflation Reuction Act. Innergex obtaining tax incentives for its projects compared to the previous tax incentive program.
Mountain Air has a capacity of 138MW. The six wind farms have power purchase agreements with a remaining term of 10 years. The Idaho Power Company thus has 100% of the electricity produced. Prices are attractive, rising from $90/MWh in 2023 to $120.9/MWh in 2032.
Innergex is an independent renewable energy producer with operations in Canada, the United States, France and Chile. Its asset portfolio currently consists of interests in 84 facilities with a total net capacity of 3,634MW. Finally, it has an energy storage capacity of 159MWh for 40 hydroelectric and 35 wind power facilities.
