Pattern Energy Group Inc. (NASDAQ: PEGI) (TSX: PEG) on April 21 announced the addition of the North Kent Wind project to its list of identified Right of First Offer (ROFO) projects from Pattern Energy Group LP (called “Pattern Development”).
Pattern Energy expects to acquire an owned interest of 43 MW in the 100-MW North Kent Wind project, which is located in the Regional Municipality of Chatham-Kent, Ontario.
“We have more than one gigawatt of projects in Canada that are operational or have been added to the ROFO list – all of which have been secured with long-term PPAs,” said Mike Garland, President and CEO of Pattern Energy. “Following our recent agreement to acquire K2 Wind in Ontario, the addition of North Kent Wind replenishes the ROFO list, which now totals 930 MW of projects we expect to acquire. With a recent growth surge, Pattern Development has significantly expanded the number of new projects it is developing, which will fuel our near-term and long-term growth. We look forward to announcing more ROFO additions in the near future.”
The North Kent Wind project has entered into a 20-year power purchase agreement (PPA) with the Independent Electricity System Operator (IESO). North Kent Wind is being jointly developed by Pattern Development and Samsung Renewable Energy Inc. Construction of the project is expected to begin by the end of 2016 and it is expected to reach completion at the end of 2017.
The addition of the North Kent Wind project increases Pattern Energy’s ROFO list to nine projects with a total owned capacity of 930 MW. The list of identified ROFO projects represents a portion of Pattern Development’s 4,500 MW pipeline of development projects, all of which are subject to Pattern Energy’s right of first offer. This is the current list of identified ROFO projects:
- Gulf Wind, Texas, 76 MW, Operational;
- Armow, Ontario, 90 MW, In Construction;
- Meikle, British Columbia, 185 MW, Ready for Financing;
- Conejo Solar, Chile, 73 MW, Ready for Financing;
- Belle River, Ontario, 50 MW, Securing Final Permits;
- Henvey Inlet, Ontario, 150 MW, Signed PPA/Late Stage Development;
- Amazon, Indiana, 116 MW, Ready for Financing;
- Mont Sainte-Marguerite, Quebec, 147 MW, Signed PPA/Late Stage Development; and
- North Kent, Ontario, 43 MW, Signed PPA/Late Stage Development.
Samsung Renewable Energy and Pattern Development separately announced on April 21 that North Kent Wind has entered into the 20-year power purchase agreement (PPA) with the Independent Electricity System Operator.
“We appreciate the support we have received from Chatham-Kent for this project, which will provide many benefits in the Municipality including job creation, business for local contractors, property tax revenue, and a $4 million community benefits contribution,” said Mike Garland, President and CEO of Pattern Development. “We look forward to continuing to work with the community on advancing this great project and helping Ontario reach its clean energy goals.”
“North Kent Wind is the sixth wind project of our $5 billion Green Energy Investment agreement here in Ontario. Samsung is proud to be a part of the Chatham-Kent community and excited about our equity partnership with the Municipality that will create local jobs,” said Steve Cho, Vice President of Samsung C&T Corp. “Samsung is dedicated to delivering meaningful benefits to communities where we are building clean, renewable energy projects.”
Local contractors will be utilized during construction and operations, including Entegrus Inc., which will obtain maintenance contracts for the life of the project. The Municipality has an option to purchase a 15% equity interest in the project, which will provide recurring incremental revenue to the municipality to fund priority projects in the municipality.
Samsung Renewable Energy is creating clean, renewable energy for generations to come. Together with its partners, Samsung is making a $5-billion investment in Ontario to create the world’s largest cluster of wind and solar power.
Pattern Development’s highly-experienced team has developed, financed and placed into operation more than 3,500 MW of wind power projects. Pattern Development has offices in San Francisco, San Diego, Houston, New York, Toronto, Santiago, Chile, and Tokyo, Japan.
Pattern Energy has a portfolio of 15 wind power facilities, including three projects it has agreed to acquire, with a total owned interest of 1,996 MW, in the United States, Canada and Chile that use proven, best-in-class technology. Pattern Energy’s wind power facilities generate stable long-term cash flows in attractive markets and provide a solid foundation for the continued growth of the business.