Three Mi'gmaq communities in Quebec have closed a joint venture deal with Longueuil-based Innergex Renewable Energy, a subsidiary of Hydro-Quebec, to build and co-own a 102.2-megawatt wind farm in the province's Gaspesie-les-de-la-Madeleine region.
The project will receive a total of $225.5 million in financing, WindInsider writes. That total includes a $108.3-million loan from the Canada Infrastructure Bank (CIB), including a $15.8-million equity loan that will enable the communities of Gesgapegiag, Gespeg and Listuguj to increase their ownership stake through the jointly-owned Mi'gmawei Mawiomi Business Corp. (MMBC).
The project also has financial backing from the Canadian Imperial Bank of Commerce, Desjardins and National Bank of Canada, the Globe and Mail reports.
The Mesgi'g Ugju's'n 2 (MU 2) project "is an extension of the existing 150-MW Mesgi'g Ugju's'n wind facility, commissioned in 2016 and located in the MRC d'Avignon," WindInsider says. "The new project maintains a 50-50 ownership structure between Innergex and the Mi'gmaq communities through MMBC."
The wind farm will go into operation in 2026 with a 30-year power purchase agreement from the Hydro-Quebec, producing enough electricity to power 20,000 average homes. The Globe ways the project is the CIB's "latest move to back projects involving Indigenous communities ahead of an explosion of spending on power generation and transmission lines in the years to come.
In May, the Globe writes, the Infrastructure Bank reported that Indigenous participation was a feature of one-quarter of the 95 projects it has funded to date, with CEO Ehron Cory casting equity participation as a prerequisite for major infrastructure projects.
"MU 2 reflects the maturity and determination of our communities to lead impactful energy development on our own terms," Frederic Vicaire, MMBC's CEO, said in the CIB release. "This partnership with Innergex and the support from the CIB demonstrate that Indigenous-led projects can be scalable, bankable, and rooted in long-term vision. It's a model we're proud of."
Source: The Energy Mix
