First Nations are in a strong position to negotiate equity investments in run-of-river power projects in their traditional territories, says consultant Pieter van Gils.
Van Gils, the former Managing Director of Ecotrust Canada Capital and now a consultant, gave a presentation to a forum hosted by the Aboriginal Business Services Network on Nov. 27 in Vancouver about Aboriginal investment opportunities in micro-hydro power projects in BC.
9. Taku River Tlingit
▸ 1.3MM litres of diesel burnt annually
▸ Cost of diesel fuel to BC Hydro $200/
MWh
▸ Electricity sold at $63/MWh
▸ Annual loss $20MM
10. Taku River Tlingit
▸ 2MW run of the river power plant
▸ 100% owned by Taku River Tlingit
▸ Ecotrust Canada Capital financed 20%
of $5MM equity
12. e IPP wave in BC
▸ 2008 5,000 GWh/yr call
▸ 2008 10 MW standing offer program
▸ 2008 Bio-energy call
▸ 2010(?) 5,000 GWh/yr call
Total number of projects: 100-200
15. Hupacasaht First Nation
▸ 6.5 MW plant
▸ Hupacasaht own 72.5%
▸ Ecotrust Canada Capital participated in
$9MM debt syndicate
16. Hupacasaht First Nation
• “When the debt is paid off, annual
dividends from this project will exceed
our payments from INAC for all our
social programs”.
19. X First Nation
▸ <10MW Project
▸ Negotiated accommodation:
▸ 1% Royalty
▸ 8% Equity given after 20 years
▸ 10% equity participation financed by
Ecotrust Canada Capital
▸ $50,000/yr from yr 11, $200,000/yr
from yr 20 or $1.7MM book value