The financial close of the Mesgi’g Ugju’s’n 2 wind farm marks a significant milestone in Canada’s renewable energy landscape, underscoring the power of Indigenous-led partnerships and the growing momentum behind green energy projects. The 102MW wind farm, an extension of the existing 150MW Mesgi’g Ugju’s’n project, is a testament to the collaborative efforts between Innergex and the Mi’gmaq communities of Gesgapegiag, Gespeg, and Listuguj, represented by the Mi’gmawei Mawiomi Business Corporation (MMBC).
The project’s financing, totalling $215.1 million, is a complex web of green loans, bridge loans, and letter of credit facilities, with CIBC, Desjardins Group, and National Bank of Canada playing pivotal roles. This financial architecture not only supports the construction and operation of the wind farm but also sends a strong signal to the market about the viability and attractiveness of Indigenous-led clean energy initiatives.
Innergex president and CEO Michel Letellier emphasised the project’s roots in collaboration, sustainability, and regional economic impact. “This project is a powerful example of how strong Indigenous-led partnerships and clean energy development go hand in hand to generate economic and environmental value,” he stated. This sentiment is echoed by MMBC CEO Frederic Vicaire, who highlighted the project’s role in the energy transition and its potential to drive reconciliation and economic empowerment.
The Mesgi’g Ugju’s’n 2 project is more than just an extension of an existing wind farm. It is a blueprint for future renewable energy projects, demonstrating how Indigenous communities can lead the charge in the energy transition. The project’s success is not just measured in megawatts but also in its ability to foster economic growth, create jobs, and empower local communities.
The project’s power purchase agreement with Hydro Québec, indexed to 25% inflation over 30 years, provides a stable revenue stream, mitigating financial risks and ensuring the project’s long-term viability. This agreement, coupled with the government decree authorising construction and the execution of major contracts, paves the way for the project’s commissioning in 2026.
The financing structure, which includes a subordinated construction loan and an equity loan, is a testament to the innovative approaches being adopted in the renewable energy sector. Plan A Capital’s role in structuring and sourcing the equity loan further underscores the growing sophistication of financial instruments in the green energy space.
The Mesgi’g Ugju’s’n 2 wind farm is a beacon of hope in the fight against climate change, proving that renewable energy projects can be economically viable, environmentally sustainable, and socially responsible. As the project moves forward, it will undoubtedly shape the development of the sector, inspiring more Indigenous-led initiatives and fostering a more inclusive and sustainable energy future. The project’s success will likely spur other communities to explore similar partnerships, accelerating the transition to clean energy and driving economic growth in Indigenous communities. Moreover, it challenges the norm of top-down energy development, advocating for a more collaborative and equitable approach. The sector must take note: the future of energy is not just green, but also inclusive and community-led.