10 MW Bavaria SolarPark, photo courtesy SunPower
MPT’s Amherstburg Solar Park will be built and operated by SunPower Corp, which has proven its crystalline solar PV technology around the world in projects such as the 10 MW Bavaria Solarpark, above. Photo courtesy of SunPower.
On June 23, 2010, MPT acquired a 20-megawatt solar photovoltaic (PV) power project in Ontario, to be designed, built and operated on MPT’s behalf by U.S.-based SunPower, a world leader in solar power with a 10-year track record of establishing successful commercial-scale facilities in Spain, Portugal, Germany, Italy and the United States.
With this transaction, MPT strengthens its presence across the renewable energy spectrum in solar, wind, hydro and biomass power generation. When completed in June 2011, the Amherstburg Solar Park will be one of the largest solar power facilities in Canada. It is expected to produce about 37,600 megawatt hours (MWh) of electricity annually, which is enough to power approximately 4,000 homes.
“The Amherstburg Solar Park is an excellent addition to MPT’s existing portfolio of low-risk, stable power infrastructure assets. It also offers important environmental and local economic benefits while supporting the Province of Ontario’s green energy mandate,” said Michael Bernstein, the Fund’s President and Chief Executive Officer. “With this transaction, we are taking an important step in the execution of our growth strategy — and putting some of the proceeds from the sale of Leisureworld to work.”
The Amherstburg Solar Park features a strong contractual framework that minimizes risk and enhances the reliability of cash flow. All of the electricity generated by the facility will be sold at a guaranteed price of $420 per MWh to the Ontario Power Authority for 20 years. The facility will be constructed under a fixed-price engineering, procurement and construction contract, which effectively transfers all of the risks usually associated with construction — such as delays or availability of parts — to SunPower. SunPower will operate and maintain the facility under a 20-year contract. Finally, for the first two years of operations, SunPower guarantees the facility’s performance at 100% of expected output on a weather-adjusted basis.
SunPower currently has more than 300 MW of solar PV plants operating globally. The Amherstburg Solar Park will use SunPower’s high efficiency solar panels, which generate up to 50% more electricity than conventional solar panels and up to four times as much power as thin-film solar technology. The facility will also use the SunPower® Tracker T20 system, which follows the sun during the day thereby increasing daily energy production by up to 30% more than fixed-tilt installations.
Michael Smerdon, the Fund’s Chief Financial Officer, noted that the Amherstburg Solar Park will contribute to MPT’s long-term cash flow stability. “We expect the facility to contribute approximately $3.5 million to our distributable cash in the first 12 months of operations. Moreover, we expect to earn a return on this investment within the 10% to 14% post-tax, levered range that we typically target for contracted infrastructure assets.”
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