Northland Power Closes Financing on Six 10-MW Solar Farms in Canada
Northland Power Inc. announced it has completed financing for the first phase of its 130-MW ground-mount program. The six solar projects, totaling 60 MW, are located in various communities in eastern and central Ontario. The financing was provided by Union Bank Canada Branch, Mizuho Corporate Bank Ltd. and CIT Financial Ltd, and consists of a $227 million construction credit facility with an 18-year term loan. The total project costs are budgeted at $285 million.
“I am very pleased to make today’s announcement, especially given that this is Northland’s first group of utility scale solar farms,” said John Brace, President and CEO of Northland. “Once completed, these facilities will contribute clean solar power to Ontario’s grid. We would like to take this opportunity to acknowledge the strong support we have received throughout the development process, from the Ontario Power Authority, the government of Ontario, and especially, the local municipalities and residents.”
Under construction by Miwel Construction Limited, a wholly-owned subsidiary of Aecon Group Inc., the projects will sell the electricity under Ontario’s renewable energy Feed-in-Tariff (FIT) program, and will use Ontario-made equipment and local Ontario labour. The projects are located near Smiths Falls and Belleville in Eastern Ontario, and Burk’s Falls near Huntsville. Commercial operations are expected to begin in 2013.
Northland is continuing with the permitting process for its remaining seven projects, totalling 70 MW, which have received power purchase agreements (PPAs) under Ontario’s FIT program.
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