The private sector is being courted for investment in energy infrastructure in almost every province of Canada, according to Paul Bradley, Managing Director, Infrastructure and Utilities for Macquarie Capital Advisors, a division of Macquarie Capital Markets Canada Ltd., a guest speaker at MPT’s recent Investor Day.

While the power industry in Canada is still largely controlled by the provincial governments and their agencies, Mr. Bradley noted that there is an “enormous push” to institute more renewable energy. Across Canada, from British Columbia to the Maritimes, there are currently numerous Requests for Proposal (RFPs).

Ontario’s Green Energy Act, for example, features a feed-in tariff, which is a standard contract with a fixed price that allows developers of a renewable energy project the certainty of a 20-year contract with the creditworthy Ontario Power Authority, the right to connect to the grid and access to a streamlined procurement and approval process.

Mr. Bradley also noted that the independent power industry “continues to provide opportunities for project acquisitions and developments. It has not slowed down much because of the recession and the push to green energy has kept this sector alive…and thriving.” Mr. Bradley pointed to development capital as offering good partnering opportunities for independent power producers as well as the prospect of mergers and acquisitions as the middle tier of the power generation market continues to consolidate.

To listen to Mr. Bradley’s presentation, please visit the Investor Day webcast on MPT’s website.

MPT expects to continue to be active in the renewable power space, where the Green Energy Act in Ontario and similar programs in other provinces are leading to improved certainty and returns for investors.

"While the market landscape is evolving in a favourable direction, we are being selective in what opportunities we look at and choose to pursue," said Michael Bernstein, MPT's President and Chief Executive Officer. "Whether greenfield, brownfield or an asset that is already operating, we typically look for a strong regulatory or contractual framework, which creates utility-like characteristics and helps to ensure long term value for our unitholders."

Did you know?

Globally, renewable energy is a core competency of the Macquarie group’s power infrastructure team, with more than 3,800 megawatts in wind, solar, biomass and hydro facilities, both operating and under development, in 12 countries.

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