TORONTO, June 15, 2021 (GLOBE NEWSWIRE) -- Northland Power Inc. (“Northland” or the “Company”) (TSX: NPI) is pleased to report that Poland’s Energy Regulatory Office has awarded a contract for difference (“CfD”) for Northland and PKN ORLEN’s (“ORLEN”) Baltic Power offshore wind project (“Baltic Power”). Under the 25-year contract, the project receives payments covering any negative balance of electricity generated offshore and fed into the grid, which means that Baltic Power will be compensated for the potential difference between the market price of electricity and the strike price set in the CfD. The award is part of the Polish Government’s commitment, through the Polish Offshore Wind Act, to support an initial phase of 5.9 gigawatts (GW) of offshore wind.
“We are extremely proud to be developing a significant offshore wind project in Poland, alongside our partner, PKN Orlen to support the country in its decarbonization objectives,” said Mike Crawley, President and Chief Executive Officer of Northland. “The CfD is a key milestone that provides the project with revenue certainty to proceed with development and confirms our inclusion in the initial phase of offshore wind development in Poland. Full scale development of Baltic Power will expand our European offshore wind presence and help us to establish an offshore wind hub in the Baltic Sea.”
Similar to previous announcements, the CfD is awarded at PLN 319.60 per MWh for up to 25 years and is adjusted to annual indexation by Poland’s annual average consumer price index. The CfD is subject to review and final approval from Polish authorities and the European Commission.
On March 24, 2021, Northland completed its acquisition of a 49% interest in Baltic Power from ORLEN, delivering a project with scale and an opportunity to participate in a growing offshore wind market in Central Europe. The project is expected to have a total capacity of up to 1,200 megawatt (MW) of offshore wind generation with construction activities expected to start in 2023 and commercial operations anticipated in 2026.
Poland provides an attractive investment destination with a clear roadmap for offshore wind and other renewable technologies and its 2040 energy policy highlights offshore wind as a key technology to help its transition to a low-emission economy. Poland’s Offshore Wind Act, which was passed earlier this year, specifies its ambitions for offshore wind and its commitment to install 5.9 GW by 2030, and up to 11 GW by 2040, making Poland the biggest market for offshore wind in the Baltic region and an attractive market for offshore wind investment.
Northland develops and operates renewable power projects in North America, South America, Northeast Asia and Europe and is a top 10 global operator and developer of offshore wind.
ABOUT NORTHLAND POWER
Northland Power is a global power producer dedicated to helping the clean energy transition by producing electricity from clean renewable resources. Founded in 1987, Northland has a long history of developing, building, owning and operating clean and green power infrastructure assets and is a global leader in offshore wind. In addition, Northland owns and manages a diversified generation mix including onshore renewables and efficient natural gas energy, as well as supplying energy through a regulated utility.
Headquartered in Toronto, Canada, with global offices in eight countries, Northland owns or has an economic interest in 2.7 GW (net 2.3 GW) of operating generating capacity and a significant inventory of early to mid-stage development opportunities encompassing approximately 4 to 5 GW of potential capacity.
Publicly traded since 1997, Northland's common shares, Series 1, Series 2 and Series 3 preferred shares trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A, NPI.PR.B and NPI.PR.C, respectively.
FORWARD-LOOKING STATEMENTS
This release contains certain forward-looking statements. Readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” These statements may include, without limitation, statements regarding Northland’s expectations or ability to complete any future offerings of securities. These statements are based upon certain material factors or assumptions that were applied in developing the forward-looking statements. Although these forward-looking statements are based upon management’s current reasonable expectations and assumptions, they are subject to numerous risks and uncertainties. Some of the factors that could cause results or events to differ from current expectations include, but are not limited to, construction risks, counterparty risks, operational risks, foreign exchange rates, regulatory risks, maritime risks for construction and operation, and the variability of revenues from generating facilities powered by intermittent renewable resources and the other factors described in the “Risks and Uncertainties” section of Northland’s 2020 Annual Report and Annual Information Form, both of which can be found at www.sedar.com under Northland's profile and on Northland’s website northlandpower.com. Northland’s actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur.
The forward-looking statements contained in this release are based on assumptions that were considered reasonable on date of release. Other than as specifically required by law, Northland undertakes no obligation to update any forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
For further information, please contact:
Wassem Khalil, Senior Director, Investor Relations
+1 (647) 288-1019
investorrelations@northlandpower.com
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Susan Sperling, Director of Communications
+1 (647) 288-1105
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