OTTAWA, Canada – Universal Kraft Canada Renewables, a joint venture between Korkia and Universal Kraft, announced a USD 15 million initial commitment credit facility, expandable to up to USD 50 million, with American asset-based lender Crayhill Capital Management.
As one of the largest renewable energy developers in Alberta, Universal Kraft Canada Renewables is poised to leverage this debt facility to bring its ambitious 1.7 GW of solar energy projects to operational status.
“The successful closing of this transaction validates the quality of our development work and portfolio, ensuring interconnection for our advanced projects. This achievement supports our portfolio’s growth and strategically positions us to meet the anticipated rise in renewable energy demand once we get past the market reforms,” said Daniela Louback, responsible for the Canadian Business Development at Universal Kraft.
The credit facility will be used to support Universal Kraft Canada Renewables’ Generator Unit Owner Contribution (GUOC) requirements related to solar energy development in Alberta, Canada.
“This strategic move underscores the company’s deep capabilities to bring meaningful and innovative solutions to market amidst a backdrop of significant reforms,” said Kristina Sweet, Canadian country manager for Korkia.
“With Crayhill’s support, we are well-positioned to accelerate the development of our projects, further cementing our contribution to Alberta’s renewable energy market.”
“We are pleased to provide this credit facility to Universal Kraft Canada Renewables as they advance the development of their solar energy projects in Alberta,” said Shweta Kapadia, managing director at Crayhill. “The financing demonstrates the need for bespoke capital solutions to support the development of renewable projects with benefits for investors, developers, local businesses and other stakeholders. Crayhill is well-positioned to fill these financing gaps in projects around the globe as demand for renewable energy continues to significantly grow.”
The GUOC, used in the Alberta electricity market, is a refundable payment to the Alberta Electric System Operator (AESO) required from the owner of a generating unit or aggregated generation facility. The purpose of the GUOC is to incentivize power generation construction near existing transmission capacity, and it is refunded over time based on generator size, location and performance.
