In November 2016, the courts approved an application under the Companies’ Creditors Arrangement Act (CCAA), submitted by the
contractor of our five ground-mounted solar projects located in and around Cochrane and Burk's Falls, Ontario. Under the approved
CCAA plan, Northland received a cash payment of $6 million, all claims and liens by the contractor and its subcontractors were released,
and $66 million in letters of credit posted to remove the liens were returned to Northland.
We are pleased to report that in January 2017, the legal case between some of Northland’s subsidiaries and the Ontario Electricity
Financial Corporation related to revenue calculations under power purchase agreements was definitively resolved by the Supreme Court
of Canada. Final resolution of this case preserved over $300 million in value for Northland.
Recognizing that continued growth means expanding our footprint outside of Canada, Northland’s transformation to a global player
in power generation continued in 2016. We have captured opportunities in new jurisdictions and technologies that leverage our expertise
and are consistent with our risk/reward profile, establishing ourselves as an international leader in the clean and green energy space.
In Europe, as mentioned above, our two offshore wind projects are proceeding well. Installation of all 150 turbines at the 600 MW
Gemini project in the Netherlands was completed in August, ahead of schedule. Currently, all of the turbines are producing full power
at contracted rates and, as of December 31 2016, Gemini has generated €182 million of pre-completion revenue. The wind park is expected to
achieve official completion mid-2017.
Our second offshore wind project, the 332 MW Nordsee One project in Germany, is also advancing on schedule and within budget. All
54 foundation monopiles and transition pieces, as well as the offshore substation and infield cables, were successfully installed in 2016.
Production of the wind turbines is ongoing, with installation expected to commence in early 2017. We continue to expect full commercial operations by the end of 2017.
Domestically, in April we achieved commercial operation for Northland’s 100 MW Grand Bend, Ontario, wind project under budget and
ahead of schedule. The project is a 50/50 partnership with two First Nations and to date is performing according to plan.
As global demand for electricity increases and the world embraces more environmentally friendly energy sources, we are seeing more – and larger – opportunities to advance our well-defined strategy of pursuing growth. As mentioned above, we have established offices and a substantial business presence in Europe, Mexico and Taiwan, where new clean and green energy generation is needed and has been identified as a strategic priority by governments and electricity system planners.