Greengate Power Corporation (Greengate) and Copenhagen Infrastructure Partners (CIP) announce that 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, 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 MWac, Travers Solar is anticipated to provide a renewable source of electricity for more than 100,000 Alberta homes during its thirty 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,” said 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.”
“CIP is pleased to continue growing its North American renewable energy portfolio through our investment in Travers Solar, CIP’s first investment in Canada,” said Senior Partner Christian Skakkebaek of CIP. “Alberta is an attractive market for investment, and we look forward to working with Greengate, one of Canada’s leading renewable energy developers, to bring Travers Solar online.”
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.