Innergex Q3 2023 Battery Storage Facility Commissioned and two funding initiatives completed
Press Release
LONGUEUIL, Quebec, November 8, 2023 – Innergex Renewable Energy Inc. (TSX: INE) (“Innergex” or the “Corporation”) provides today an update on its funding initiatives, its development activities and its operating and financial results for the third quarter ended September 30, 2023.
“Our team’s focus on execution is reflected in our ability to close funding initiatives, bring projects to commercial operation and advance solid potential projects. With the closing of both the tax equity financing for the Boswell Springs project and the partnership with Crédit Agricole Assurances in France, we are well positioned to continue to invest in greenfield development across our markets,” said Michel Letellier, President and Chief Executive Officer of Innergex. “We remain efficient in both operating our facilities and growing our business. We continue to adapt and improve our approach to develop sustainable, secure and financially-sound projects to maximize our returns. The energy transition is supported more evidently every day translating into massive opportunities for Innergex. Our team continues to develop proactively projects to not only seize but create the opportunities that will strengthen our position as a leader in the renewable energy sector.”
The Corporation executed the commissioning of its Salvador battery storage project. The Corporation also executed on two of its funding initiatives: the closing of a US$322.7 million ($441.6 million) tax equity commitment for its Boswell Springs wind facility and the completion of its partnership agreement with Crédit Agricole Assurances for a 30% minority interest in Innergex’s portfolio in France, representing a €129.5 million ($188.8 million) investment.
1. Solar project with a battery storage capacity of 30 MW/120 MWh (4 hours).
2. PPA is a fixed lump sum capacity payment for the availability of dispatchable energy.
3. Battery storage capacity of 35 MW/175 MWh (5 hours).
The Salvador battery energy storage project was commissioned in October 2023, generating revenues from the sale of energy. It is expected to be receiving capacity payments towards the end of the year. An official inauguration event took place on site with several Chilean government representatives. The Innavik hydro project started delivering power to the Inuit community of Inukjuak, Nunavik, Quebec, while commissioning activities are ongoing. The San Andrés battery storage project is also advancing, the interconnection was completed and the commissioning should begin by the end of the year. At Boswell Springs, the construction activities are ahead of schedule, while the site will be closing in the coming days for the winter season. In Hawaii, the Hale Kuawehi amended PPA, with a 56% rate increase, executed with HECO was approved by the Public Utility Commission and construction activities are progressing.
PROSPECTIVE AND DEVELOPMENT PROJECTS
Regarding the Corporation’s portfolio of prospective projects, growth continues in all regions. The Canadian market development team participated in the 1,500 MW request for proposals (“RFP”) of Hydro-Québec. Two projects for a total of 400 MW were proposed. Retained projects are expected to be announced in the coming months. Development activities in Canada have accelerated with many provinces announcing their intention to secure renewable electricity in the months to come. The US market also presents attractive opportunities and significant progress were made with promising greenfield projects. In Chile, Innergex submitted an offer in the RFP launched by Codelco, the main Chilean mining company, for a total of 250 GWh per year of renewable energy production, from 2026 to 2040. In France, the team continues to move projects forward through the administrative and social acceptance stages and to initiate new potential wind and solar projects. During the quarter, 587 MW of new prospective projects were added to the Corporation’s portfolio.
FUNDING INITIATIVES
Innergex closed a US$322.7 million ($441.6 million) tax equity commitment (“Upfront Investment”) with J.P. Morgan and Capital One (the “Tax Equity Investors”) for the 329.8 MW Boswell Springs Wind Project located in Wyoming, United States. The Tax Equity Investors have committed to fund the Upfront Investment at substantial completion and to make cash payments as production tax credits are generated (“PAY-GO”) over a 10-year period.
Innergex and Crédit Agricole Assurances, in collaboration with Crédit Agricole Centre-Est, have concluded their long-term partnership. The partnership allows Crédit Agricole Assurances to gain a 30% minority interest in Innergex’s portfolio in France, representing a €129.5 million ($188.8 million) investment. The proceeds were used to reduce Innergex’s revolving credit facilities and will fund the Corporation’s development activities over the coming years.
The Corporation made significant progress with the financing of three unlevered Canadian hydro assets and still expects it to be completed by the end of the year. The targeted proceeds from this financing could total approximately $170 million.
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