Texas crisis hits Canadian wind-power provider with hedging loss

Innergex wind turbine Image: Innergex Renewable Energy Inc. website

The Texas energy crisis that sent power prices surging is also leaving a Canadian renewables company with hedging losses after wind and solar plants in the Lone Star state were disrupted by extreme weather.

Longueuil, Quebec-based Innergex Renewable Energy Inc. estimates the potential financial impact of the weather events at C$45 million to C$60 million ($35 million-$47 million) on a consolidated basis, it said in a statement Wednesday.

Innergex also said it’s evaluating force majeure and other mitigating options. The company’s shares fell as much as 2.1 per cent on Wednesday.

The extreme weather has impaired Innergex’s Flat Top wind facility in Mills County. The company expects the plant to resume normal operations by the weekend. Some power generation has continued at two of its other wind facilities and a solar plant in the state.

The combined effect of supply interruptions, abnormal market pricing conditions and contractual obligations under power hedges have had positive and negative financial impacts, depending on varying conditions and different times, Innergex said.

© 2021 Bloomberg L.P.

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.