- Utilities company Capital Power (CPX) is executing a series of 20-year power purchase agreements with Duke Energy Carolinas
- The contracts are for three solar development projects in North Carolina, which total 160 megawatts combined
- In the first five years, the projects should generate approximately C$23 million of adjusted EBITDA and $5 million of AFFO annually
- The company expects to start construction in late 2021 or early 2022, with commercial operations starting in 2022’s last quarter
- Capital Power (CPX) is up 0.36 per cent and is currently trading at $30.66 per share
Utilities company Capital Power (CPX) is executing a series of 20-year power purchase agreements with Duke Energy Carolinas.
The 20-year contracts are for the construction of three solar development projects in North Carolina, which will have a total 160 megawatts combined. The projects are Hornet Solar (75 megawatts), Hunter’s Cove Solar (50 megawatts), and Bear Branch Solar (35 megawatts).
Capital Power expects to finance these solar projects using debt and tax equity.
In the first five years, the projects should generate, on average, approximately C$23 million of adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) and $5 million of adjusted funds from operations (AFFO) annually.
Capital Power’s President and CEO, Brian Vaasjo, commented on the company’s latest long-term solar project contracts.
“We are delighted to provide additional renewable energy to the people of North Carolina.
“With the Whitla Wind 2&3 and Strathmore Solar projects in advanced development in Alberta, we will be adding an additional 350 megawatts in renewable capacity to our fleet by the end of 2022, representing another step toward our goal of being net carbon neutral on or before 2050.
“We continue to enhance our expertise in solar developments and construction while building our competitiveness for future solar growth opportunities,” he said.
Capital Power expects to begin construction of the North Carolina solar projects in late 2021 or early 2022. The company is planning for commercial operations at the projects to start in the fourth quarter of 2022.
Capital Power (CPX) is up 0.36 per cent and is trading at $30.66 per share at 11:50am EDT.