Alterra Power (TSX: AXY) on Oct. 20 announced that it has agreed to acquire the water rights for four hydroelectric development projects in British Columbia from Sigma Engineering.
They are the Chusan, Powell, Eldred North and Eldred South projects. The projects are located 20-30 kilometers from Alterra’s existing Toba Montrose and Jimmie Creek projects, and are situated along the Toba Montrose transmission line. Each project is expected to have between 10 MW and 15 MW of generation capacity, and could be eligible for power purchase agreements under BC Hydro‘s Standing Offer Program.
The acquisition is expected to be completed by the end of 2015 and is subject to satisfaction of customary conditions precedent.
Jay Sutton, Alterra Vice President of Hydro, said: “Acquiring these projects gives us new expansion options in the Toba Valley where we will be operating nearly 300 MW of renewable generation once the Jimmie Creek project begins operating next summer.”
Alterra Power operates five power plants totaling 553 MW of generation capacity, including British Columbia’s largest run-of-river hydro facility and largest wind farm, and two geothermal facilities in Iceland. Alterra owns a 247 MW share of this capacity, generating over 1,250 GWh of clean power annually. Alterra has an extensive portfolio of exploration and development projects and a skilled international team of developers, explorers, builders and operators to support its growth plans. Alterra also has two new projects under construction:
- Shannon – 204 MW wind project located in Clay County Texas; expected to be in operation by Q4 2015 or Q1 2016; 50% owned by Alterra; and
- Jimmie Creek – 62 MW run-of-river hydro project adjacent to the existing Toba Montrose facility; expected to be in operation by Q3 2016; 51% owned by Alterra.
Upon completion of these two projects Alterra will operate seven power plants totaling 819 MW of capacity and will own a 381 MW share of this capacity, generating over 1,700 GWh of clean power annually.