Connor, Clark & Lunn Infrastructure Grows Renewable Energy Footprint
Connor, Clark & Lunn Infrastructure (CCL Infrastructure) is taking significant strides in expanding its renewable energy portfolio by acquiring a 49% interest in a collection of three operational wind projects in Ontario, totaling around 235 megawatts (MW) of gross capacity. This latest investment elevates CC&L Infrastructure's renewable energy portfolio to a remarkable almost 2.4 gigawatts (GW), which includes over 1.2 GW of wind capacity distributed across ten different assets. These assets are thoughtfully diversified by market, counterparty, jurisdiction, and wind regime.
Overview of the Wind Projects
The projects in focus, known as Adelaide Wind, Bornish Wind, and Goshen Wind, showcase gross capacities of approximately 60 MW, 73 MW, and 102 MW, respectively. Combined, they generate enough energy to meet the annual energy needs of more than 200,000 households in Ontario. Notably, all the energy from these projects is committed under 20-year Power Purchase Agreements (PPAs) with the Independent Electricity System Operator (IESO), which boasts a solid Aa3 rating from Moody's. NextEra Energy Resources, the seller, will maintain a 51% stake in these projects while also managing and operating them in the future.
A Commitment to Sustainable Development
This strategic acquisition aligns with CC&L Infrastructure’s goal of developing a robust and long-term infrastructure asset portfolio, anchored by dependable counterparties and stable cash flows. According to Matt O'Brien, President of CC&L Infrastructure, this move enhances their positioning in Ontario's renewable energy market and underscores their dedication to responsible investment practices that offer attractive risk-adjusted returns.
The wind projects not only contribute to energy generation but also deliver substantial long-term economic benefits to the local communities they serve, primarily through property tax revenues and direct community funding. The projects have established community benefit agreements with several local Indigenous groups, reinforcing their commitment to social responsibility.
Market Dynamics and Future Outlook
Eric Reidel, Managing Director at CC&L Infrastructure, emphasized that this acquisition reflects the strong fundamentals in Canada's renewable energy sector. The ability of their team to navigate complex acquisitions while collaborating with top industry partners is a testament to their operational effectiveness. Completing this transaction with NextEra Energy Resources illustrates CC&L's relationship-centric approach to sourcing opportunities that bolster the long-term value of their portfolio.
Collaboration with Financial Advisors
CIBC Capital Markets played a pivotal role as CC&L Infrastructure’s financial advisor throughout this transaction, while Torys LLP offered legal counsel. Their expertise was instrumental in enabling CC&L to successfully solidify this deal.
Understanding CC&L Infrastructure
Founded within the framework of Connor, Clark & Lunn Financial Group Ltd., CC&L Infrastructure has carved a niche by investing in middle-market infrastructure assets that provide appealing risk-return profiles, longevity, and stable cash flow potential. To date, the firm has effectively managed around $7 billion in diversified assets across various regions and sectors, amassing over 100 facilities through 35 different investments. CC&L Infrastructure exemplifies the commitment to quality and innovation in asset management, being part of a larger group that oversees approximately $154 billion in total assets.
Frequently Asked Questions
What is CC&L Infrastructure’s latest investment?
CC&L Infrastructure has invested in three Ontario wind projects, totaling around 235 MW of capacity.
How much does CC&L’s renewable portfolio now represent?
With this acquisition, CC&L Infrastructure’s renewable energy portfolio now totals nearly 2.4 GW in capacity.
Who will manage the newly acquired wind projects?
NextEra Energy Resources will retain a 51% ownership and manage the projects moving forward.
What are Power Purchase Agreements (PPAs)?
PPAs are long-term contracts that secure the sale of energy generated by these projects for a specified duration, in this case, 20 years.
How does this investment benefit local communities?
The projects provide long-term economic contributions through property taxes and direct funding, along with community benefit agreements with local Indigenous groups.
