Greek company buys Alberta solar projects for $1.7B plan

Key Takeaways:

• Mytilineos, a Greek energy and metals company is purchasing five major solar projects in Alberta.
• It is the company’s first ever North American translation. 
• Mytilineos applauded Alberta and the federal government, citing business friendly policies as a major factor in their decision. 

The Whole Story:

Mytilineos Energy & Metals plans to purchase a portfolio of five Alberta solar projects from Westbridge Renewable Energy Corp

The company stated that the $1.7-billion solar-energy plan would be the largest of its kind in Canada. Officials noted that the batch of solar projects is the first transaction Mytilineos has made in North America, following its international strategy to seek opportunities in countries and areas with high commercial interest and business-friendly environments. 

The transaction is to be completed by way of a share purchase. Westbridge will retain ownership of the SPVs and continue to lead the development of the Projects until closing, which is subject to certain conditions, including regulatory approvals.

Projects covered by the purchase include: 

• Georgetown – Solar power plant with a capacity of up to 230 MWac, located in Vulcan County, Alberta;
• Sunnynook – Solar power plant with a capacity of up to 280 MWac, located in Special Area No. 2, Alberta;
• Dolcy – Solar power plant with a capacity of up to 200 MWac, located in the municipal district of Wainwright, Alberta;
• Eastervale – Solar power plant with a capacity of up to 300 MWac, located in the municipal district of Provost, Alberta; and
• Red Willow – Solar power plant with a capacity of up to 225 MWac, located in Stettler County No. 6, Alberta.

Together, the projects are expected to generate 2.1 terawatt-hours (TWh) per year of renewable energy, equivalent to the electricity necessary to provide power to 200,000 Canadian homes for one year.

Mytilineos expects the two most advanced projects, Georgetown and Sunnynook, to be ready to build status by end of this year, while the remaining three projects (approximately 800 MW) are in advanced development status and likely won’t be shovel ready until mid 2024.

All of the projects have applied for and/or been permitted for the installation and use of a battery and energy storage system, with a total anticipated combined storage capacity of 1,200 MWh for the total portfolio.

The company cited Canada’s recently announced the Clean Technology Investment Tax Credit and Clean Electricity Investment Tax Credit as factors in the decision. It noted that the policies may provide a refundable tax credit of up to 30% on the eligible capital expenditures. This would be $430 million based on the estimated costs. 

“The selection of Alberta has been the obvious choice for Mytilineos, as the area has some of the highest irradiation in Canada, making it an ideal location for the development of solar projects in the country,” stated company officials. “Alberta is one of the fastest growing renewable energy markets in North America and has a target, as per its Renewable Electricity Act, to achieve 30% production from renewable energy sources  by 2030. In Mytilineos’ view, the province of Alberta has established a streamlined permitting process which favours appropriate planning and predictability.”

The announcement marks the first portfolio monetization for Westbridge. The company stated that the sale its Alberta portfolio underscores the Westbridge team’s meticulous planning, diligent execution, and deep understanding of market dynamics.

“Westbridge recognized the strong potential of Alberta to become a significant jurisdiction for solar development,” said the company. “By garnering critical mass in the province and partnering with Mytilineos, Westbridge has demonstrated its value and will play an important role in Canada’s transition to net-zero.”