Algonquin Power Buys 10-Megawatt Solar Project in Ontario

Algonquin Power & Utilities Corp. (AQN), a Canadian electricity provider, agreed to buy a 10-megawatt solar project near Cornwall, Ontario, from EffiSolar Energy Corp.

Algonquin, based in Oakville, Ontario, will begin construction in the second half of 2012 and expects the project to start generating power in early 2013, according to a statement yesterday.

The project will sell electricity to the Ontario Power Authority under a 20-year contract at a feed-in-tariff rate of C$443 ($428) a megawatt-hour. It will generate enough energy to power 1,000 homes.

The project will cost C$45 million to complete including the purchase price, Algonquin said in the statement. The acquisition also includes the rights to buy 10 other solar projects in Ontario with a total capacity of 100 megawatts.

To contact the reporter on this story: Zachary Tracer in New York at ztracer1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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