Canadian Clean Energy Companies Spotlight Rising EU Electricity Prices

Canadian clean energy producers say they are benefiting from European electricity rates, prompting some governments to introduce measures to protect consumers and businesses from rising prices.

Kingsey Falls, Que.-based Boralex (BLX.TO) and Toronto-based Northland Power (NPI.TO) reported first-quarter financial results on Wednesday. In both cases, management noted the dual impact of high electricity rates in Europe, as well as pressure from countries on the continent to cut energy ties with Russia.

“We are very excited about the new opportunities that are emerging as a result of rising electricity prices and the European push for energy security,” Northland Chief Executive Mike Crawley told analysts on Wednesday on a conference call after the results. He said “higher market prices” for the Gemini wind farm off the coast of the Netherlands helped the company meet analysts’ expectations in the latest quarter.

Boralex CEO Patrick Decostre pointed to a “sharp increase in energy prices” in France, mainly caused by prolonged outages of many of the country’s nuclear reactors. The company is the largest independent producer of onshore wind energy in France, with more than 60 farms operating across the country, according to the company’s website.

“The other good news is that the price in the UK has also gone up significantly. So the demand for electricity is even higher,” Decostre said on a call with analysts. Boralex has plans for a 90-megawatt wind project in the Scottish Highlands.

EU countries including Germany, France, Italy and Spain have announced plans to cut taxes or provide rebates to cushion the impact of higher energy prices. At the same time, the 27-member bloc is reportedly preparing accelerated permits for renewable energy projects to help replace Russian fossil fuels.

“Countries like Germany, the UK and the Netherlands have particularly higher targets for offshore wind,” Crawley said. “We believe Northland is well-positioned to achieve these goals.”

Toronto-listed Northland shares rose 1.81 per cent to $38.34 at 1:45 p.m. ET on Wednesday. Boralex added 1.66 percent to $38.04.

Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.

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