TransCanada Adds Three Additional Solar Facilities to Company's Power Portfolio
TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) announced it has acquired three additional Ontario solar power facilities from Canadian Solar Solutions Inc. (Canadian Solar). Each of the newly built facilities has a generation capacity of 10-megawatts (MW) with Liskeard 3 and 4 both located in the New Liskeard region and William Rutley located east of Ottawa. These three new facilities were completed at a cost of approximately $182 million, bringing TransCanada’s investment in its Ontario solar program to almost $400 million.
These three new projects have now started generating electricity under 20-year power purchase agreements with the Ontario Power Authority. The deal follows the previously announced purchase of four solar facilities as part of an agreement with Canadian Solar signed in 2011. Combined, these seven solar facilities are expected to generate enough electricity for more than 12,000 homes.
“As a company, we are proud that we have built a diversified portfolio that includes natural gas and liquids pipelines, as well as emission-less energy sources to meet market needs,” said Russ Girling, TransCanada president and chief executive officer. “Each year, we do more to reduce our own emissions and develop technologies to help us operate in a more environmentally sustainable way, while ensuring that Ontario’s energy consumers continue to have their needs met.
“These solar acquisitions are an important part of our $38 billion capital program and add 20-year revenue streams in a core geography that are backed by a high quality credit and long-term customer relationship,” added Girling. “TransCanada is Canada’s largest independent power producer and we have successfully grown this business alongside our significant pipeline assets in key areas where we understand the regulatory and business landscape.”
In addition, TransCanada has recently signed a host community agreement with the Town of Greater Napanee where we expect to receive final permits by the end of 2014, with construction of a 900MW natural gas-fired combined cycle power plant to begin in early 2015. The Napanee Generating Station is fully contracted for 20 years with the Ontario Power Authority and is expected to be in service in 2017 or 2018.
To date, the company has invested over $5 billion in emission-less energy sources including the largest wind farm in New England, 13 hydro power facilities in New Hampshire, Massachusetts and Vermont, the Ontario solar projects and Canada’s largest wind farm development located in Quebec. TransCanada is also a partner in Bruce Power, Canada’s first private nuclear generator that currently produces 6,200 MW of emission-less electricity in Ontario. TransCanada also specializes in building highly efficient natural gas-fired power plants that are helping North America’s transition to a less carbon-intensive electricity supply mix.