Caisse de dépôt et placement du Québec (CDPQ) will provide $107 million of debt financing to Potentia Renewables, the largest independent rooftop solar power producer in Canada.
Potentia Renewables Inc., formerly Potentia Solar Inc., is 100% owned by Power Energy Corporation, a wholly-owned subsidiary of Power Corporation of Canada.
CDPQfunds will aid the development of additional renewable power projects by Potentia, whose solar arrays are diversely located on the rooftops of schools and commercial and industrial locations. Its 569 arrays currently in operation have a generation capacity of approximately 97 megawatts, enough to power over 12,000 homes per year. The electricity generated is sold to the local electrical grid under 20-year power purchase agreements, resulting in stable, long-term revenue streams and relatively fixed costs.
In 2014, CDPQ invested in the construction of a Potentia solar array project which was recently completed.
“Over the years, Potentia has demonstrated its ability to deliver successful projects. Today’s transaction provides the company with the financing necessary to expand its portfolio of assets in the renewable energy sector,” said Marc Cormier, Executive Vice-President, Fixed Income at la Caisse. “In addition to increasing the population’s access to green energy, this is a prime example of the importance la Caisse places on assets that provide persistent returns in a promising sector.”
“We are pleased to complete the financing with la Caisse and successfully build on our existing debt relationship with a premier pension fund manager,” said Jeff Jenner, Chief Executive Officer, Potentia Renewables Inc. “Potentia will use the capital to invest in its large platform of solar and wind development projects in North America and abroad and accelerate its profitable growth.”
photo credit: Potentia Renewables