TORONTO, Oct. 12, 2011 /PRNewswire/ -- Atlantic Wind & Solar Inc. (OTC: AWSL), presumably like everyone interested in Ontario's renewable energy future, welcomes McGuinty back home. While the months prior to the election were tumultuous, Atlantic spent the time submitting FiT applications in the manner of "business as usual" and continuing to fine tune its approach to the installations at hand and the Ontario business going forward. The Company, having submitted FiT applications just before the election and again the following day, can report that the application pile was considerably higher the day after the election versus any day it had seen in the past few weeks and months. The FiT program is alive and booming.
The Company also notes that, from a renewable energy perspective, the strong support for the NDP in the election shows a strong support for energy conservation and is in full agreement that an electron saved is an electron earned - or, in this case, an electron produced.
Record Quarters for Ontario subsidiary
The Company is pleased to report that in quarters two and three of 2011 its Ontario subsidiary, Atlantic Solar Inc. (ASI), processed more CAE solar projects from its pipeline than in any similar prior period since the inception of the OPA FiT Program. ASI had always remained optimistic that more OPA contract offers would be offered at the current tariff rates and is more so given the recent electoral results.
Atlantic CEO, Mr. Gilles Trahan comments: "Atlantic submitted over 11 megawatts of additional CAE solar project applications to the OPA during this short period of time and has prepared another 10 megawatts of applications now ready for submission." Mr. Trahan continued, "Since the restructuring of the organization last May the Company not only increased its processing speed but did so under a significantly reduced cost structure, greatly improving the Corporation's bottom line."
At this point Atlantic has submitted all necessary documentation to the OPA for the 20 contracts it has been offered, has received the Waiver of Notice to Proceed (NTP) on 19 out of 20 projects, and has received Connection Impact Assessment (CIA) approval on 4 of the 20. Construction dates for the initial projects will be announced once NTP is granted.
Fine Tuning Its Approach
Atlantic is fine tuning its approach to the imminent installations in Ontario and perpetually fine tuning the future Ontario business. To this end the Company is currently finalizing the requirements for turn-key solutions for use in, at least, projects one through four.
This has also led to a fine tuning of the Company's relationship with AIM Global Energy Inc. The two companies have entered agreements on various levels over the last two years. Those same two years were marked by a long waiting period for installations. Thus while Atlantic continues its interest in the AIM technology it has to acknowledge that its initial interest in AIM was based on the competitive advantage of inverter performance at the time plus the geographical advantage of its assembly in Ontario and that these two points together would represent a solid head start in Ontario. But both the LOI-to-Lease and Engineering-to-NTP processes turned out to take much longer than anticipated. Atlantic originally saw the Ontario business beginning as a small but steadily growing series of installations that would allow Atlantic and AIM to grow together. Atlantic now foresees the first Ontario installations being a single batch of 4, or 8, or even 16, depending on how fast the next CIA approvals are granted. A bulk-installation approach favours the speed and economies of scale of turn-key solutions over customized installations. In addition the passage of time has brought more manufacturing to Ontario, as indeed was the intent of the FiT Program, plus improvements in technology all around. Atlantic will continue to evaluate using the AIM inverter on a project by project basis but is unlikely to use the technology for the first round or two of Ontario installations.
The S-1 Registration and Offering
Finally, Atlantic continues to evaluate the timing of the filing of its SEC S-1 Registration statement. A year ago Atlantic had planned a public offering to raise funds to build and own the first round of renewable energy projects in Ontario. Between the project delays, election uncertainty, and the general market nervousness of 2011 the timing has never seemed right to file. The Company now plans to construct the first Ontario projects through partnerships and shared ownership structures. Atlantic will earn its developer fee which can be applied toward further project development. The Company will continue to keep its S-1 up to date and ready to file when conditions are right. It remains a goal of the Company to raise funds to build and own power producing assets. These latest election results provide comfort that there are many more contracts to come in Ontario.
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Disclaimer: Shareholders and investors are strongly cautioned against placing undue reliance on information set forth in these communications in making any investment decisions concerning our securities. The matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed from time to time in the Company's periodic reports filed with the OTCMarkets.com including the company's Annual Report, Quarterly Reports and other periodic filings. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements.
SOURCE Atlantic Wind & Solar Inc.