Northland Power closes financing on first Six 10 MW solar farms

Tuesday, Jul 17, 2012

Northland Power Inc. ("Northland") (TSX:NPI)(TSX:NPI.PR.A)(TSX:NPI.PR.C)(TSX:NPI.DB.A) announced today that it has completed financing for the first phase of its 130 MW ground-mount program. The six solar projects, totalling 60 MW, are located in various communities in eastern and central Ontario. The financing was provided by Union Bank Canada Branch, Mizuho Corporate Bank, Ltd. and CIT Financial Ltd, and consists of a $227 million construction credit facility with an 18-year term loan. The total project costs are budgeted at $285 million.

"I am very pleased to make today's announcement, especially given that this is Northland's first group of utility scale solar farms," said John Brace, President and CEO of Northland. "Once completed, these facilities will contribute clean solar power to Ontario's grid. We would like to take this opportunity to acknowledge the strong support we have received throughout the development process, from the Ontario Power Authority, the government of Ontario, and especially, the local municipalities and residents."

Under construction by Miwel Construction Limited, a wholly-owned subsidiary of Aecon Group Inc., the projects will sell the electricity under Ontario's renewable energy Feed-in-Tariff (FIT) program, and will use Ontario-made equipment and local Ontario labour. The projects are located near Smiths Falls and Belleville in Eastern Ontario, and Burk's Falls near Huntsville. Commercial operations are expected to begin in 2013.

Northland is continuing with the permitting process for its remaining seven projects, totalling 70 MW, which have received power purchase agreements (PPAs) under Ontario's FIT program.

ABOUT NORTHLAND

Northland Power Inc. owns or has a net economic interest in 1,005 MW of operating generating capacity, and 320 MW of generating capacity in construction. Northland is also actively developing 280 MW of wind, solar and run-of-river hydro projects already awarded PPAs, and approximately 2,200 MW of additional power generation opportunities. Northland's assets comprise facilities that produce electricity from "clean" natural gas and "green" renewable sources such as wind, solar and biomass. Electricity generation and capacity is primarily sold under long-term contracts with creditworthy customers. Northland's operating thermal power assets are located in the provinces of Ontario and Saskatchewan, Canada, and include the 120 MW Iroquois Falls cogeneration facility, the 110 MW Kingston combined-cycle power facility, the 265 MW Thorold cogeneration facility, the 86 MW Spy Hill peaking facility and an economic interest in two natural-gas- and biomass-fired generation facilities as well as a 19% equity interest in the 230 MW Panda-Brandywine combined-cycle power facility located outside Washington, D.C. Northland's operating renewable power facilities include the 128 MW Jardin d'Eole wind farm and the 100 MW Mont Louis wind farm both located in Quebec, two wind farms totaling 22 MW of installed capacity located in Germany and several rooftop solar power facilities in Ontario. Northland owns the 260 MW North Battleford project, which is currently under construction in Saskatchewan, Canada, and is currently constructing 60 MW of ground-mount solar projects located in various communities in eastern and central Ontario. Northland's cash flows are diversified over five geographically separate regions and regulatory jurisdictions.

Source: Marketwire