Ontario's precedent setting Feed-in-Tariff program for Renewable Energy is spawning a few new Canadian based Renewable Energy industry leaders, virtually overnight
TORONTO - Ontario's precedent setting Feed-in-Tariff program for Renewable Energy is spawning a few new Canadian based Renewable Energy industry leaders, virtually overnight, says Gilles Trahan, Chairman of Atlantic Wind and Solar Inc (OTC:AWSL), one of North America's most promising young renewable energy companies.
"A lot of new companies are struggling right now in an effort to get their foot in the door, but the fact that we were here years before Ontario's FIT program was introduced has positioned us at the leading edge of the competition to exploit this tremendous opportunity. Our real competitive advantage, though, and one that we expect will ensure the Company's future success for years to come, lies in the fact that our systems offer up to 30% higher efficiency than industry norms," Mr. Trahan further stated.
Atlantic Wind and Solar Inc. points out that since the Ontario Power Authority launched the Province's lucrative new FIT program last October, AWSL and other green power/renewable energy companies have focused on the enormous commercial rooftop solar energy opportunities across Ontario, seen as the low hanging fruit in the Province's Renewable Energy build out.
Power generated by these projects will be sold directly into the grid through Power Purchase Agreements (PPA) contracted to the Ontario Power Authority (OPA) for 20 years, at an average price of 71.3 cents per kilowatt hour, with guarantees for expeditious connection to the grid. Clearly, the introduction of FIT has put Ontario on the lightning fast track of Renewable Energy development while also paving the way for AWSL, given its superior technology, to rapidly grow market share in this emerging 21st Century growth industry.
Superior technology the key
Proprietary technology gives Atlantic Wind and Solar a significant advantage in marketing its renewable energy systems: An advanced Converter/Inverter Technology (CIT), which is specifically designed to convert direct current (DC) energy from the photovoltaic panels into usable alternating current
(AC) electricity for the Ontario utility grid provides up to 30 percent more clean, renewable electricity per year compared to conventional inverter technology. This advanced technology, while slightly more expensive than current inverter technology, has less of a "drop-off" rate (efficiency loss), providing a significantly higher return on investment for the Company's systems. This advanced technology is also designed to start collecting energy produced in much reduced sunlight conditions, and therefore will turn on earlier at dawn and shut off later at dusk than preceding CIT's, while harvesting more energy output during a 24 hour cycle.
AWSL Quick to Capture the Benefits
Trahan noted that the Company began to focus on solar energy opportunities in Ontario last year when the Province signaled its long-term energy strategy with the cancellation of two nuclear energy projects deemed too costly to build and maintain. "It became readily apparent that Renewable Energy was about to take center stage in Ontario's long term energy future!"
AWSL was quick to plan and launch a focused campaign to market its high efficiency Solar Energy rooftop systems across Ontario. The marketing campaign has met with gratifying success, having achieved numerous milestones in quick succession:
Wholly-owned subsidiary Atlantic Solar Inc. has entered into a partnership with The Remington Group Inc., one of the leading commercial and residential real estate developers in Ontario, for the installation of up to $15 million of the Company's solar energy parks on Remington-owned rooftop facilities. The purchase and installation of these eco-friendly renewable energy systems will be financed by a 50/50 joint venture between Remington Group and AWSL through a Limited Liability Partnership (LLP.)
Through its 47.5%-owned Canadian affiliate Hybridyne Power Systems Canada Inc. (HPSC), AWSL is also in the process of installing a turnkey 2000 Kw peak capacity photovoltaic (PV) energy park with a projected capex of approximately $16.8 million in Brownsville, about 80 kilometers east of Toronto on the outskirts of Newcastle, Ontario. When the Brownsville project is completed later this year, the 10-acre solar energy park, with more than 90% Canadian and 50% Ontario content, will deliver enough clean energy to power more than 360 gas-heated homes each year.
Letters of Intent (LOIs) covering 20 additional rooftop projects and encompassing an additional 6MW of the Company's Solar Energy systems have recently been received by AWSL or its affiliate Hybridyne Power Systems Canada Inc. from various commercial sectors that include Agricultural, Manufacturing, Real Estate Developers and Property Managers. These new LOIs bring the total number of solar energy projects represented by LOIs, Purchase Orders and/or advanced negotiations to approximately 30 projects, encompassing more than 12 MW of electricity-generating capacity. The Company is also in the process of negotiating another 8 MW worth of projects in the same region.
Last October, AWSL announced the formation of a strategic relationship with leading real estate and property management company Cushman & Wakefield Ltd. to secure rooftop leases in Ontario for its photovoltaic (PV) Solar Energy Park renewable energy systems.
In December, 2009, AWSL announced that it had commissioned the first Hybrid Renewable Energy Supplemented Data Centre in North America. The groundbreaking system was constructed over the previous 6 months for Pizza Pizza Limited.
The Company's rooftop solar energy projects are flexible and offer building owners several options as to how the program is carried out and how the building owner can be paid: (1) a percentage of annual electricity revenues from the system, (2) a fixed price per square-foot of rooftop being leased to host the system or, (3) a joint venture partnership.
Atlantic Wind and Solar has received USD $3.5 million in funding to date. The funds are being used to finance current projects, and the Company expects to complete a major financing in the near future to fund a growing list of new projects and to support aggressive corporate growth as rooftop solar energy adoption accelerates across Ontario.
Trahan stated: "AWSL is looking to finance a total of 20 MW worth of projects. The 20 megawatts represent approximately $480 million in revenues for AWSL and its equity partners, which will be secured and guaranteed over the next 20 years for power sold directly to the Ontario Government." Trahan added that "an additional $160 million in gross equipment sales and installations is also expected to be generated for AWSL and its equity partners through these initial projects."
In addition to aggressively marketing its systems across Ontario in the foreseeable future, the Company also plans to market its high-efficiency CIT technology into European markets, where customers pay more for energy compared to North Americans, and generally get their renewable energy from installations that are 10+ years old and significantly less efficient than today's technology.
AWSL, which trades in the U.S on the over-the-counter market, is pursuing a listing on a senior stock exchange in both Canada and the U.S.
For further corporate information and/or to subscribe for regular news updates from Atlantic Wind & Solar, please visit: www.atlanticwindandsolar.com or call Mr. Brent O'Connor at 1-800-891-1657 ext. 223.
February 19, 2010