Polaris Renewable Energy Closes Third Acquisition in 2022 - Ecuador

About this update from Polaris Renewable Energy Inc.

[{"type":"text","content":"Polaris Renewable Energy Closes Third Acquisition in 2022 - EcuadorTORONTO, ON / ACCESSWIRE / September 7, 2022 / Polaris Renewable Energy Inc. (TSX:PIF) (\"Polaris\" or the \"Company\"), is pleased to announce that it has closed the previously announced acquisition of an operational hydro project in Ecuador, its third successfully concluded acquisition in 2022.Acquistion SummaryPolaris has acquired 83.16% of the issued and outstanding shares of Hidroelectric San Jose de Minas S.A. (\"San Jose de Minas\"), in exchange for $16.3 million in cash, including closing adjustments. Polaris intends to seek to purchase the remaining shares outstanding in the next 12 months. San Jose de Minas is an operating run-of-the-river hydro project with a capacity of 6.0 MWs, located along the Cubi River in San Jose de Minas, Ecuador (the \"Project\"). San Jose de Minas has debt outstanding of $6.1 million with a local bank.The key attributes of the Project include:The Project has 7 years remaining on a 15-year power purchase agreement (\"PPA\") with a wholly-owned Ecuadorian government entity, for the sale of all power production;Current pricing of the PPA is $78.10 per MWh;The Company will look to sign a subsequent PPA at the end of the term of the current PPA;The Project has one expansion opportunity consisting of the introduction of a conduction channel from the adjacent Perlabi river that would increase the load factor of the existing plant from approximately 65% to approximately 85%. Such expansion does not require any amendments to the current PPA and is expected to take approximately 10 months to complete;In addition, the Project has capacity to add a turbine which would enable increased production during the rainy season. With the additional turbine the Hydro Project is expected to increase its power capacity to 10 MWs. Such an expansion would require an amendment to the current PPA or a separate PPA. The Company will work to define this in the fourth quarter of this year.In addition to the acquisition of the operational project, Polaris Renewable Energy has formalized a development framework agreement with the selling shareholder to jointly pursue further hydro projects in the Ecuadorian market. The initial target of the partnership will be the upcoming renewably energy tender for 500 MWs by the Ecuadorian government in the fourth quarter...

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