Polaris Infrastructure Inc. announced that it has closed the previously announced acquisition of an operational solar project in the Dominican Republic. The Dominican Republic - Solar: Polaris has completed the acquisition from a Canadian based renewable energy developer, Potentia Renewables Inc., a 32 MWdc operational solar project named Canoa 1 located in the Barahona Province, Dominican Republic. The Project reached COD in March 2020 and has a 20 year power purchase agreement in place with Edesur Dominicana SA (EDESUR), a local Dominican distributor.

The key terms and attributes of the acquisition are as follows: Polaris purchased all of the issued and outstanding common shares of Emerald Solar Energy SRL which owns 100% of the Project and the licenses and permits, in exchange for $20.3 million in cash, including closing adjustments; Polaris now owns 100% of the Project which includes the Canoa 2 expansion as described below; Polaris assumed non-recourse debt at the project level of $35.3 million; The Project has a PPA denominated in USD with an estimated price for 2022 of $128.10 per Mwhr. Such PPA has an inflator of 1.22% per annum until the price reaches $142.80 per Mwhr at which point the price remains fixed until the end of the PPA in 2040. The Project has an extendable 30-year lease agreement with the original developer and is located on a portion of a land parcel totalling ~1.4km2.

The Canoa 1 project represents approximately 30% of the total land parcel. The definitive Concession allows for the capacity installed to be doubled from the current operating capacity of 32.6 MWdc to approximately 65 MWdc. A second PPA for Canoa 2 with the local distributor would be required and these discussions are actively continuing.

To the extent a PPA for Canoa 2 is reached, Polaris will look to commence construction shortly thereafter. Polaris Infrastructure funded the acquisition with cash on hand.