Okanagan Wind farms sold for reported $100M

In a blockbuster deal estimated to be worth $100 million, the two wind farms visible from the Okanagan Connector highway between West Kelowna and Merritt are being sold to a business unit of Hong Kong billionaire Li Ka-shing.

"We are excited to be acquiring CK Group's first renewable energy project in Canada," said CEO Derek Goodmanson of Calgary-based Canadian Power.

Canadian Power is a subsidiary of CK Group, a business unit of Hong Kong billionaire Li Ka-shing, who has a diverse empire of real estate, port, retail, energy and technology interests.

Canadian Power purchased Okanagan Wind from Toronto-based InstarAGF Asset Management, which coordinates real estate projects for institutional investors.

Okanagan Wind comprises Pennask Wind Farm and Shinish Creek Wind Farm, which each have five huge wind turbines.

They are the only wind power facilities located in the Okanagan.

The two farms are side-by-side near the Pennask Summit off the Okanagan Connector highway, 50 kilometres west of Kelowna.

The wind at the high-elevation blustery sites turns the 10 huge turbines and harvests power that is turned into electricity.

In fact, the two Okanagan Wind farms generate about 15 megawatts of electricity a day, which is enough to power 7,000 to 10,000 homes per year.

The combined capacity of the two farms is 30 megawatts a day.

The electricity generated by Okanagan Wind is sold under an inflation-linked electricity purchase agreement with BC Hydro.

There's 37 years remaining on that agreement.

That's what makes the Okanagan Wind so valuable.

It generates a lot of electricity and has a guaranteed buyer for that energy for decades.

"We look forward to working with the team at Okanagan Wind, as well as the community and First Nations partners," said Goodmanson.

Okanagan Wind has an impact benefits agreement with local First Nation communities to provide access to job opportunities, annual benefit payments to the community, funds to support scholarships and environmental monitoring.

Canadian Power's parent CK Group also has renewable energy investments in Australia, Europe and China, including wine, solar, hydrogen and municipal waste projects.

Canadian Power also owns the Meridian Cogeneration Plant (gas-fueled electricity with by-product steam used by industry) in Saskatchewan and has a stake in four power generation plants in Alberta and Ontario through its 49.99% interest in TA Gogen Limited Partnership.

The deal, which comprises of cash and debt assumption, is expected to close by the end of June.