Canadian Renewables Developer Selling Distributed Generation Solar Platform

Breaking News 26 October

Canadian Renewables Developer Selling Distributed Generation Solar Platform

Toronto-based Potentia Renewables has hired an advisor and launched a process to sell its distributed generation C&I solar arm, according to sources familiar with the matter.

The renewables developer and operator has hired National Bank Financial as the financial advisor and is seeking proposals from potential buyers to participate in a two-stage auction, the sources added. The process is codenamed Project Sol.

Potentia and National Bank Financial did not respond to requests for comment.

Potentia is 100% owned by Power Sustainable, a subsidiary of Power Corporation of Canada, which is a diversified management and holding company.

The distributed generation solar platform comprises a 141 MW solar portfolio of 735 rooftop and nine ground-mounted solar sites, spread across 17 Ontario localities, all of which are currently operational.

Generation from the facilities is 100% contracted under fixed-price agreements with the Independent Electricity System Operator (IESO), with an average of 13 years remaining on the contracts, according to a teaser.

Potentia has identified growth opportunities at 1,400 potential net metering sites, and forecasts average EBITDA from the business at CAD 70m annually between 2023 and 2027.

Tailwinds for renewable energy in the coming decades will bolster the business, according to the teaser, which cites Canadian climate policy and the electrification of the transportation sector and industrial processes as demand drivers going forward.

The company also has 58 MW of total wind operating capacity, according to its website.

In March, Potentia CEO Jeff Jenner transitioned to a board role, leaving executive functions divided among President Jeremy Jagt; Senior Vice President of Business Development Ben Greenhouse; and General Counsel and Corporate Secretary Andrew Hope.

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