Finavera Renewables Inc. has announced that it has entered
into discussions with a potential corporate investor - and
has received a non-binding indicative financing proposal from
that investor - in connection with four wind projects currently
being developed by Finavera in the Peace Region of British
The proposal contemplates that the investor would invest
100% of the equity requirements for each of the four projects
awarded an electricity purchase agreement by BC Hydro, pursuant
to the BC Hydro Clean Power Call.
Finavera Renewables CEO Jason Bak said - “This proposal contains
financing solutions for these 300 megawatts of wind projects
in British Columbia and would allow us to move forward with
strong bids to secure power purchase agreements. An equity
solution provides one of the greatest milestones towards the
development of wind farms. It facilitates the arrangement
of senior project debt - which, together with equity, would
represent a $1 billion financing solution for the expected
cost of constructing and commissioning these four wind farms.
"For investors, this provides a project financing solution
that does not dilute the company’s capital structure and significantly
enhances the value of the project development work completed
by Finavera Renewables.”
The financing proposal does not represent an offer or commitment
to provide any debt or equity financing and is subject to
completion of satisfactory due diligence, credit approval,
definitive agreements and other customary conditions.
The four wind projects in the Peace Region have several fundamental
attributes that will contribute to their development into
strong operating wind farms - high wind speeds resulting in
high energy yields, close proximity to transmission lines
and ease of accessibility.
The company has conducted detailed turbine layout assessments
for the projects and discussions are underway with major turbine
manufacturers for the supply of wind turbines. The company
has involved the project stakeholders, local groups and communities
since these projects were initiated more than three years
The Clean Power Call Request for Proposals (RFP) - released
by BC Hydro on June 11, 2008 - targets up to 5,000 Gigawatt
hours of clean, renewable energy per year from larger-scale
projects using proven technologies. According to the current
B.C Hydro Clean Power Call schedule, proposals will be due
November 25, 2008 and electricity purchase agreements are
expected to be awarded between April and June 2009.
The Clean Power Call aligns with the greater British Columbia
Energy Plan, which calls for 90 per cent of electricity in
the province to be generated from clean or renewable sources
and for all new electricity generation projects to have zero
net greenhouse gas emissions.
For more information on the Clean Power Call - Click