Greengate Power Corp., a Canada-based privately-held renewable energy company, and Copenhagen Infrastructure Partners (CIP), a fund management company, say they have entered into an agreement with the intention to fund the further development and construction of the Travers Solar project.
Subject to the achievement of certain remaining milestones, the construction of the project is anticipated to commence in mid-2020, with full commercial operations targeted for the end of 2021.
Located in Vulcan County, Alberta, Travers Solar is expected to be Canada’s largest operating solar energy project, with an estimated capital cost of approximately C$500 million. With a total generating capacity of 400 MW AC, Travers Solar is anticipated to provide a renewable source of energy for 30 or more years of operation.
As part of the agreement, CIP is anticipated to provide funding for the development, construction and operation of Travers Solar, and Greengate will retain an ongoing economic interest and provide management services throughout the life of the project.
The investment in Travers Solar is expected to provide substantial economic and environmental benefits to Alberta while demonstrating investor confidence in the province’s deregulated power market and its Technology Innovation and Emissions Reduction (TIER) program. It is anticipated that more than 500 full-time jobs will be created during construction, and once built, Travers Solar is expected to be one of Alberta’s largest producers of environmental attributes for compliance by large emitters under TIER.
“Greengate is excited to be working with CIP, the world’s largest renewable energy-focused infrastructure fund, to bring this world-class project through to completion,” says Dan Balaban, president and CEO of Greengate. “This continues Greengate’s successful track record of developing and securing investment for renewable energy projects of unprecedented scale that deliver strong investor returns, and we are proud to be part of creating subsidy-free, market-based solutions that significantly improve Alberta’s environmental performance.”
CIBC Capital Markets acted as Greengate’s exclusive financial advisor on the transaction, and Osler, Hoskin & Harcourt LLP acted as legal advisor. FIH Partners acted as CIP’s exclusive financial advisor and Norton Rose Fulbright Canada LLP acted as legal advisor.
Photo: A Greengate solar project