The acquisition is subject to approval by the Ontario Power Authority (OPA).
Cornwall Solar owns the rights to develop a 10MW (AC) solar project located near Cornwall, Ontario and APCo has acquired an option to buy ten additional Ontario based solar projects (FIT Pipeline).
Projects in the FIT Pipeline have submitted feed-in-tarriff applications for an additional 100MW (AC), APCo said.
The project will be developed using a ground-mounted photovoltaic array system, with expected annual generation of nearly 13,400MWh, enough to provide electricity to about 1,000 homes.
Following the completion of all regulatory submissions and approvals, construction of the project is expected to begin in the second half of next year, and is expected to be operational in early 2013.
Total capital cost of the project is targeted at about $45m, which amount includes the consideration to be paid for the acquisition of the project.
APUC CEO Ian Robertson said the transaction strengthen the company’s strategic focus on continued investment in renewable energy in North America, and will add a stable and predictable source of earnings and cash flow to its power generation fleet.
The acquisition is subject to certain regulatory approvals and other closing conditions, and closing of the transaction is expected to occur by the end of this year.
The project has been granted an Ontario feed-in-tarriff contract by the OPA, with a 20-year term and a rate of $443/MWh, resulting in expected initial annual revenues of about $6.2m.
