Dream Alternatives Announces First Accretive Renewable Power Acquisitions, Accretive Loan Investments & Approval of September 2014 Distribution - Seite 2
The projects are currently in various stages of development and operation. By August 2015, it is expected that all four projects will be operational, providing an estimated cash-on-cash yield of 12.4% on the $20.1 million of equity invested by the Trust over the entire contract term of 20 years. Prior to August 2015, the expected cash-on-cash yield is expected to be in the range of 6.6% to 6.8%. Each of these acquisitions is subject to the satisfaction of customary conditions. Each of the Ontario solar projects have a FIT contract that allows for the sale of solar electricity to the Ontario Power Authority for a fixed price for a term of 20 years. Each of the Nova Scotia wind projects has a Community Feed-in Tariff ("ComFIT") contract which provides for the sale of electricity to Nova Scotia Power Inc. (Nova Scotia's regulated utility) at a fixed price for a term of 20 years. Accordingly, the cash flows generated from these projects increase the secure, long term cash flow generation ability of the Trust and significantly reduces the Trust's re-investment risk. Three of the four projects have community or aboriginal partners and will benefit from participation in development and a share in project cash flows
Details of the individual projects are noted in the table below.
Project | Contract Term with Provincial Regulated Utility | Commercial Operation Date | Share of Capacity (MW) | Total Equity Requirement - millions |
Ontario Rooftop Solar | 20 Years | Jan 2014 | 0.7 | $3.5 |
Ontario Rooftop Solar | 20 Years | Dec 2014 | 1.7 | $6.0 |
Nova Scotia ComFIT Wind | 20 Years | Aug 2015 | 10.6 | $7.9 |
Nova Scotia ComFIT Wind | 20 Years | Dec 2014 | 3.1 | $2.7 |
Total | 16.1 | $20.1 |
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