Looking forward

Innergex is in the business of building and acquiring quality infrastructure assets and operating them for a very long time. We are proud of our ability to produce electricity from clean and renewable sources in ways that create jobs and distributable wealth for many of our partners and stakeholders.

Incentives for the development of renewable energy infrastructure assets

Infrastructure assets require large upfront capital expenditures. In the Canadian renewable energy sector, there are very few government subsidies for producers; however, government incentives exist to encourage independent power producers to develop new electricity-generating assets:

  • A policy incentive in the form of long-term fixed-price power purchase agreements with public utilities or other creditworthy counterparts gives us certainty of revenues, which enables us to optimize project-level financing;
  • An economic incentive in the form of accelerated depreciation reduces or defers tax expenses, which optimizes our cash flows;
  • And for some existing facilities, a financial incentive of one cent per kWh for the first 10 years of operation under the Canadian federal government’s ecoENERGY for Renewable Power program, which ended in 2011.

These incentives enable the private sector to develop new infrastructure assets, while public utilities are provided with stable and predictable electricity costs over a long-term horizon and society gains long-life renewable electricity generation capacity that produces virtually no greenhouse gas emissions.

Key performance indicators

In conducting our business, we measure our performance using key performance indicators that provide information about our ability to generate cash flows to sustain current dividends and dividend increases,
as well as our ability to fund our continued growth. These include:

  • Production vs the long-term average
  • Equipment availability
  • Adjusted EBITDA
  • Free Cash Flow
  • Payout Ratio


Direct and indirect economic impacts

We believe that the development of renewable energy assets is intimately connected to the economic development of local communities and First Nations. In a variety of ways, we share with them the economic benefits generated by our activities. This provides municipal and First Nations administrators with funds to plan their own development and create new opportunities for their communities:

  • Distributions to equity owners from facilities owned in partnership
  • Contractual payments, often through impact and benefit agreements
  • Voluntary payments
  • Donations and sponsorships
  • Jobs
    • Local tradespeople and technicians as well as local independent contractors and service providers during project development
    • Local operators and maintenance tradespeople once a facility is in operation
  • Infrastructure investments

In 2014:

  • With our partner, we upgraded and rip-rapped a municipal road to make it wider, safer, and more erosion-resistant in anticipation of the expected increase in traffic from the construction of the Mesgi’g Ugju’s’n wind farm in Quebec.
  • We financed the construction of a pedestrian suspension bridge just downstream from a 100 ft. waterfall in Cascade Falls Regional Park in British Columbia. The bridge, which was completed in early 2015, is owned and operated by the Fraser Valley Regional District.
  • Through the Ashlu Creek Foundation, we helped to provide Wi-Fi Internet access for residents of the Upper Squamish Valley in British Columbia, an area that was not serviced by major telecommunications service providers.
  • Also in British Columbia, we helped to fund the construction of a new open-air community barn in Pemberton to be used as a public space and event venue, as well as the completion of the Pemberton Valley Trail Association’s Valley Loop walking trail.

ULHP independent economic benefits assessment

In response to local demand and wanting to know if the Upper Lillooet Hydro Project (ULHP) was generating the economic benefits that had been estimated in the Environmental Assessment Certificate application in 2012, the Company hired a consultant to conduct a third party review of the project’s actual and forecasted local, regional and provincial economic benefits, including output, GDP, employment, household income and tax contributions. The results of this review, released in July 2015, indicate that the ULHP generates similar provincial benefits, but greater regional benefits, than the 2012 estimations. The recent study estimates that the ULHP will generate approximately $29 million in GDP, $21 million in household income, $7 million in local taxes and 496 person-years of employment within the Squamish-Lillooet Regional District during its construction phase.


“The optimization of local community benefits associated with the construction of the ULHP confirms that Innergex has been proactive in working with the local community, the contractor and local governments to identify such opportunities and create frameworks for success.”
– Typlan Planning and Management, June 2015