TAC - Capital Power: Leveraging Acquisitions For Sustainable Expansion
2024-05-02 07:56:22 ET
Summary
- Capital Power plans to phase out coal from its power generation sources by the end of FY24.
- The company recently acquired two gas-fired power generation facilities, adding 1608 MW of net installed capacity to its portfolio.
- Capital Power is prioritizing investments in gas-fired generation facilities to finance long-term renewable growth.
Capital Power ( CPX:CA ) is one of the largest Canadian IPPs, with an installed capacity of 9.3 GW as of April 2024. Following an all-time high in revenue and profit reported in FY23, attributed to soaring electricity prices in Alberta, the company is now pursuing a growth strategy focused on the gradual decarbonization of its operations. By the end of FY24, Capital Power plans to phase out coal from its power generation sources through the repowering of Genesee 1 and 2. In February 2024, CPX finalized the acquisition of La Paloma and Harquahala , adding 1608 MW of net installed capacity to its portfolio of gas-fired power generation facilities. This acquisition is expected to have an average annual impact on adjusted EBITDA of CAD$265m between FY24 and FY28. Management assumes that the energy transition requires the use of gas to meet electricity demand during peak hours. Capital Power's recent acquisitions aim to address this need while also expanding its presence in the United States, where revenue generation was relatively limited as of December 2023....
Capital Power: Leveraging Acquisitions For Sustainable Expansion