Financing Closed for Two Wind Energy Farms in Quebec

wind energy farms

Wind Energy Farms ( Solar Thermal Magazine ). TÉMISCOUATA-SUR-LE-LAC, QC, June, 2014 – Boralex Inc. and Témiscouata Regional County Municipality (“RCM”) have closed a $64.1 million financing for the Témiscouata I wind farm. At the same time, Boralex has closed a$142.7 million financing for Témiscouata II wind farm. 

“Completion of financing for the two Témiscouata wind farms is an important step in the development of these projects. Along with the RCM, Boralex has managed to successfully implement itself in this beautiful Quebec region through projects of high quality” said Boralex President and CEO Patrick Lemaire.

After several years of work, we are pleased with the recent agreements that have allowed us to make sure to get our community project performing equipment at a competitive price in addition to a maximum benefit for our community

added Témiscouata RCM Warden Guylaine Sirois.

Given the above financing arrangements and investments and commitments totalling $12.6 million for the Témiscouata I, consisting of$6.2 million for the RCM and $6.4 million for a Boralex subsidiary, and $30.2 million for the Témiscouata II wind farm wholly owned by Boralex, the two wind farms have been fully financed.

The sole lender in each of the two financing arrangements is KfW IPEX-Bank.

Témiscouata I financing (Témiscouata RCM and Boralex) 

Financing for the Témiscouata I community wind farm, with almost 25 MW installed capacity, totalled C$64.1 million and consisted of:

  • C$52 million construction loan, to be converted into a term loan with an 18-year term after the beginning of commercial operations; and
  • Short-term credit facilities, including bridge financing and a letter of credit facility, totalling C$12.1 million, for purposes of financing certain costs incurred during construction that are repayable by Hydro-Québec and issuing various letters of credit.

Témiscouata I is a community wind power project under a partnership between Témiscouata RCM and Boralex consisting of 10 Enercon wind turbines, which is covered by a 20-year power purchase agreement with Hydro-Québec. The wind farm is slated for commissioning in December 2014.

Témiscouata II financing (Boralex) 

Financing for the Témiscouata II community wind farm, with an approximate 50 MW installed capacity, totalled C$142.7 million and consisted of:

  • C$127 million construction loan, to be converted into a term loan with an 18-year term after the beginning of commercial operations; and
  • Short-term credit facilities, including bridge financing and a letter of credit facility, totalling C$15.7 million, for purposes of financing certain costs incurred during construction that are repayable by Hydro-Québec and issuing various letters of credit.

Commissioning of Témiscouata II, a Boralex project also consisting of 22 Enercon turbines, is anticipated by December 2015.

Work on the Témiscouata I and II wind farms 

Construction of the two wind farms, Témiscouata I and II, is already underway onsite. Work at Témiscouata I is on schedule with 7 foundations poured to date and 80% of the access roads built. For Temiscouata II, 30% of the access roads and 50% of the work areas for installing the wind turbines are completed.Nearly 200 workers are expected onsite this year.

About the Témiscouata wind farms
The Témiscouata wind farms, with a total contracted capacity of 75 MW, consist of the 23.5 MW Témiscouata community wind farm (Témiscouata I), a partnership project between Témiscouata RCM and Boralex, to be commissioned in December 2014, and the 51.7 MW Témiscouata II wind power project, to be commissioned in late 2015.

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This post was prepared by Solar Thermal Magazine staff.