BC clean energy company makes initial foray into competitive Ontario renewable energy market
January 6, 2011
Photovoltaic solar
One of BC’s largest clean energy companies is getting in on the renewable energy action in Ontario. Plutonic Power of Vancouver has announced that it is purchasing a portfolio of three yet-to-be-built photovoltaic solar facilities in Ontario that will eventually generate 50 megawatts of power. Plutonic is buying the assets from Ontario’s First Solar Inc.
This is another thrust into a new energy direction for Plutonic, which already has a stable of run-of-river and wind projects in British Columbia. Plutonic says it will make an equity contribution of approximately $6 million and will serve as the projects’ managing partner. Plutonic’s partner, GE Energy Financial Services, is also part of the deal.
TSX: Plutonic Power
In a January 5 news release, Plutonic Power CEO Donald McInnes is quoted as saying the expansion into both a new market and a new technology represents significant growth for the company. In the past few days, Plutonic has been on a steady rise on the TSX. The latest move by the company to diversify into a new market in a booming renewable energy region is expected to have a positive impact on its stock which closed at 2.53 on Wednesday, the highest it’s been since mid-November.
The investment in solar is also a first for GE, one of the leading global companies on the renewable energy front. GE’s Canadian managing director indicates that solar power represents significant growth as technology costs decrease and efficiencies increase. The acquisition of solar photovoltaic is also a prudent move to help balance wind-generated power, which can be unpredictable.
Construction of the three sites in Ontario (Amherstburg, 10MW, Belmont, 20MW and Walpole, 20MW) is expected in mid-2011. The power generated at these sites will be sold to the Ontario Power Authority under 20-year energy purchase agreements and will produce enough firm electricity to power approximately 6,300 local homes.
For Plutonic, the move is small, but significant. This is a clear example of a successful BC company looking to the future and developing a renewable energy portfolio that will provide the company a greater depth as the clean energy business grows in Canada. Despite political talk of BC being a clean energy powerhouse, there’s been little to show in recent years as other jurisdictions, like Ontario, take firm action. McInnes and Plutonic appear to be on the path to becoming the Jimmy Pattison of renewable energy in BC – a company with visionaries who see the clean energy future and are taking the right steps to secure it.
MC.
