Q1 2021 Boralex Inc Earnings Call
[music].
Good morning, ladies and gentlemen, and welcome to the Boral, a X first quarter 'twenty 'twenty. One results because you did you put me to just didn't use cash.
Alfred skull.
John All lines are a listen only mode. Following the presentation, we will conduct a question and answer session. If at any time of day scullery quite immediate assistance. Please press star zero for the operating this.
This goes really created on a Wednesday basic taught each one of you what I'd like to turn a conference that Richard just if I do please go ahead.
Alright, Thank you operator, and good morning, everyone will comfortable Alex first quarter results conference call, a very sorry for the delay we had a connection problem what a.
At a full line in fact, so a.
I hope my colleagues will be able to join me a soon.
Shawn So a joining me on the on the line so there'd be tapping debt costs, our president and Chief Executive Officer.
And they'll get met Vice President and Chief Financial Officer, and members of our management and finance teams. So Mr debt cost will begin with comments about the highlights of a quarter.
So given that we'll carry on with financial highlights and then we'll be able to day are available to answer all your questions.
As you know during this call we will discuss a theoretical as well as forward looking information when talking about the future. There are a verity of risk factors that have been less debt.
Sorry different filings with securities regulators, which can materially change our estimates estimated results. So these documents are all available for a consultation.
SEDAR Dot com.
In our webcast presentation document the disclosed results are presented both on the right first and have a comeback.
[laughter] basis, unless otherwise stated all comments made in this presentation will refer to combined net basis figures. So it would be a press release, the MD&A debt consolidated financial statements and a cup yesterday's presentation are all posted on their website.
Web site at <unk> com under the investors section. So if you wish to receive a copy of these documents. Please contact me so much feedback from a start with his comments there I missed a desktop or your demographic, yes, just in time, a defense Hello Akshay.
Okay. So you can go ahead and then than that.
A.
Given that we'll follow up with a financial sector.
Thank you.
Good morning, everyone I am pleased to present, you our first quarter Russell to date. It was another good quarter with resolute and contribution of recent acquisitions in line with our expectations.
EBITDA for the quarter was slightly lower than first quarter last year, but this was due to the exceptionally strong wind conditions, we had at the beginning of 2020 in France.
We have made significant progress on the development front in the quarter was the addition of 180 megawatts of project to our pipeline and favorable announcement for the athletes and.
And when you add it all project. Some smaller project also progressed in the pipeline for from preliminary two mid stage and to advance stage.
We commission our 12 megawatts, that's usually a wind farm in France, and we sold a word 12 megawatt thermal power station in <unk> in France. We are know officially a pure play in renewable energy was 100 person, although a production being renewable.
On slide five and six of the presentation.
You can see the changes in our pipeline and growth fast since the release of a work force quarter rest of World Class February.
I'm very proud of all the good work accomplished by our development and support teams continuing to add projects to the pipeline and ensuring days project are continuously progressing across the different phases, leading to their commissioning.
Moving to the presentation of our growth task.
Can see on slide seven with the addition of projects under construction ready to build and secured each represent a potential of 3058 megawatts of installed capacity.
250, a megawatt over our 2023 objective.
Please note a whether that's some projects so I kept wheat will be commissioned in 'twenty 'twenty four.
I won't go over all of our achievements with regards to what works for a strategic directions as presented on slide eight, but I would like to highlight the optimization.
A wind farms totaling 136 megawatts in Canada optimization of maintenance as well as the signature of a new five year corporate PPA with IBM, France.
As mentioned before we then do with the ending of contract signed 15 years ago in France, additional corporate Ppas and Repowering projects are expected in the future.
These represent valuable projects, providing interesting returns for a fraction of the time required to execute compared to over traditional Greenfield project.
I would like now to take some time to talk about the progress made with regards to a where CSR ESG initiatives.
As you probably have seen we published our first stand alone CSR report at the end of February.
Which is available on our website, we have made good progress in a short period of time and this is just a beginning a value.
I'm pleased to announce that the recent Irene a renewed.
Director of CSR, EMEA Lac stiff enough.
It's a very strong background in the area having worked.
More than 12 years in sustainable development, most recently as a senior advisor for a large consulting firms.
She will report directly to me and we will concentrate our efforts on continuing to make to make fast progress in our CSR ESG practice and reported.
As mentioned on our last call in 2021, we are working on each of the 10 priorities.
<unk>, which we plan to improve and set specific goals in coming years.
But we will put further phases and true.
Of these priorities, which hard diversity and equal opportunities greenhouse gas emissions and S and safety.
We will provide more information with regards to CSR, although our upcoming Investor day, which will be held on June 17th.
As mentioned before CSR and ESG criteria are an integral part of a strategic plan. So stay tuned and we will have interesting things to share.
This completes my part a will know let Bruno cover the financial portion in more detail and we'll be back later for the question period.
Thank you Patrick good morning, everyone.
I will start with a review of the good progress made in light of our 2023 financial objectives.
At $142 million or <unk> for the last 12 months is in line with our 140 to 150 million objective.
Our dividend distribution ratio stands at 47%.
In line with our a 40% to 60% target.
And our net installed capacity stands at 2455 megawatts, which is getting closer to our 2023 objectives as mentioned earlier by Patrick.
Now moving to the analysis of our first quarter as shown on slide 13 in our presentation document.
Comparable production of a Canadian wind operations.
Was 2% lower than anticipated production, but 1% higher than the same quarter last year.
Wind conditions were a week at the beginning of the year, but picked up significantly at the end of the quarter.
Production from the acquisition of a <unk> share in three wind farms in Quebec was 8% higher than anticipated.
In France comparable wind production was 2% lower than anticipated and 26% lower than the same quarter last year, which had exceptionally strong conditions.
Overall total wind production for the quarter, combining Canada, and France was only 1% lower than day, and then the anticipated production and 4% lower than last year.
Turning to I don't know Canadian Idaho continued to perform very very well with production, 25% higher than boats anticipated production and last year's production for the same quarter.
Conditions were however, more difficult in the U S, where production was 22% lower than anticipated.
35% lower than a first quarter last year.
Overall, the agro segment reported production, 3% lower than anticipated and 14% lower than last year from same quarter.
In a solar segment production from the acquired participation in seven solar power station CRE and a U S.
Was 8% higher than anticipated.
In summary, total production for the quarter was a 1% lower than anticipated and was in line with a comparable quarter last year, including the contribution of our two acquisitions and the commissioning of wind farms.
First quarter revenues were down 2% compared to last year due to less favorable favorable a resource conditions than a year ago as mentioned before.
For the first quarter of 2021 EBITDA adjusted was on a 162 million compared to 169 million for the same quarter of 2020.
Net earnings were.
43 million in the first quarter compared to.
$37 million last year.
We generated.
$115 million.
As far as cash flow from operations in the first quarter compared to 124 million in the same quarter last year.
<unk> acquisition related costs and incremental interest paid in connection with the acquisition financing.
<unk> was $60 million compared to 68 million in a first quarter last year, reflecting the reduction reduction in the cash flow from operations.
As indicated on slide 17, our financial position remains solid with our net debt to total market cap ratio.
45% on March 31, 2021 compares to a 41% on December 31st 2020.
In conclusion, we are making constant progress in the execution of a strategic plan.
Our working on our submissions for upcoming bids.
With a greenfield projects located in upstate New York, we have a solid financial position to pursue a growth initiatives and we are putting a final touch to the update of a strategic plan, which will be unveiled on June 17th during an investor day. So please save that date.
You for your attention, we're now ready to take your questions.
Thank you ladies and gentlemen.
We'll begin the question and answer session should you have any questions. Please press star followed by a one on your Touchtone phone you will hear from Macquarie.
Questions will be bolt.
A receipt should you wish a decline from day polling process. Please press star followed by a two or using a speaker phone. Please lift your handset before pressing any DS one moment for your first question.
Your first question comes from David <unk> with Raymond James David. Please go ahead.
Thanks, Good morning, everyone.
My first question here, just maybe a little bit on the on a longer term outlook.
I know that you have obviously a lot of runway for growth in France, and maybe not so much in the near term but.
There's a lot a volume expected there as well as in Quebec in New York I'm wondering if you could just maybe touch on if you have any color on what you're doing to two.
Kind of fill the top of your your funnel a potential projects be it land lease activity or things like a that anything that could.
Be a source of value.
Greenfield development, a few years down the road.
Yes, good morning, David.
Just if.
If you look to our pipeline and the dimension funnel, we have increased during this quarter with 118 megawatt this part of the pipeline.
This is this is the entrance in the pipeline and some of the project has gone from preliminary two mid stage or advanced stage directly. So so so this is where we make progress and we are very active.
It's something a day.
Beginning of the crisis, we if you look back to Q3 or Q2 last year. It was more difficult, but no since Q4 and this this quarter, it's really starting a going well and I think it's a it's the right way to develop project.
Okay, Great and we are doing debt and we're doing that in France, and the north from every kept both.
Excellent. Thanks, Patrick and then maybe just one more I know that you had the peak a corporate PPA with IBM in France.
And interesting arrangement.
I was wondering if you could talk about are you starting to see some real momentum in corporate demand for renewable power in France. It seems as though you've had several corporate Ppas recently could you just talk about the outlook that you see there I guess, maybe for Repowering and re contracting over the next little while.
Yeah, it's it's a.
Exactly as you mentioned there is a new a new real trend of Big large corporation to sign with a with a company like us. So so so it's a should we have more electricity available not under contract we.
Could sell it today, so it's a really an avenue a and there is more demand and then what is supplied by the system.
And we are also for.
For each project looking to the possibility of a repowering.
And a decrease because with Repowering. We are we a producing generally more electricity more turnover and on a long term and in catching long term contracts. So it's interesting true.
And you have some details in the in the Investor.
A relation presentation. If you want on this in each year and in our strategy.
Thanks, very much for that Patrick I'll get back in the queue.
<unk>.
Thank you. Your next question comes from Rob per Bear with National Day, Robert Please go ahead.
Thank you good morning, everyone.
Good morning.
So I realize you're going to update your a strategic plan on June 17th, but im looking for a little bit of a preview here anything you can tell us on on what the plan might look like how far out do you think youll be looking at.
And I imagine youll be setting a higher targets for for production in the future.
Contemplate going into into new regions a.
Maybe a new types of resources, Inc.
Anything you can tell us on.
What we should be.
Looking for from Boralex in the future.
Okay.
One day, we we have we have a process of approving the plan. We have just as you know with board yesterday. So we are making good progress in discussing debt. We have some work to continue so a really I would not a.
Not to give any any point today, and we'll ask you to be patient to Rupert and wait for June 17.
But we will we will take into accounts the situation of the company, which is very healthy.
And indeed, the different opportunities in the different market and continue in the same the same philosophy didn't before.
Okay, well I had to try a revenue.
Acquisitions added.
In California can we imagine that maybe youll expand the areas of focus a little debt in the future.
Yeah Yeah.
Two years ago, we start in the U S by the state of New York, We have been very successful. We I hope we will continue to be I think we will continue to be successful there we.
We have an established team and we are a and established a pipeline of projects at different stages of the organic pipeline and now its a it will be time to look at other states in the U S. A.
Typically as I mentioned in February a California will be one of this and this is not this is not new but a we will come with some so a more structured a pre.
<unk> on June 17.
Okay, Great and then as a follow up to David's question on the corporate Ppas in France, I'm wondering if you can give us a little more cash.
On the Ibms PPA. If you can talk maybe about the scale of that transaction and I noticed youre working with.
Expo as an off taker can you can you talk about.
How the contract is structured with the with the aggregator and is this going to be the models that youll use a future.
Yes.
<unk>, we have some confidentiality a confidentially agreement with our client and so I I really refer you to do a press release after April 30.
Just a maximum allowed to share with you. It's a it's an important a.
Five year contract a.
It will be it will be on the asset ending their contract with EDF, no new assets and a but I cannot go further than this a rupert I'm sorry, not to answer your question. This morning really.
But maybe if you can talk a little about the dynamic how you work with an aggregator.
And in general how much value can you add two to a class globally generally yeah, yeah, yeah generally the role of the aggregator is to make the killer Brea.
<unk> you.
Oh, and then every 15 minutes a periods of the electricity, which entered in the system and the electricity, which is sticking out of the system. So so this is a rule of a net <unk>.
Not that internally yet.
So sometimes we're working with exports, sometimes we're working with a weekend work with with a other aggregator we have done that in the past also but we need to have this partnership, but but but we are selling the electricity from one site or different sites in this case.
And then then the aggregator played a role off what is the demand of the customer and what is the production of <unk> sent a different size of Boralex and make the re <unk> and nowhere or added value is to have access to wind a.
Electricity, which is a I.
I don't know the exact figure, but 99 per cent of the of the.
The wind production in France is contracted with EDF. So there is no electricity available to be sold and just the companies like us which contract starting more than 15 years ago of axis to greet you this kind of green electricity in France today.
So as you move forward and you start looking at a storage projects is this a capability you will be able to provide in house and increasingly in the future.
We are we are exploring this in exploring if it is at this a the right alternative to do it internally and not some contracted and because sometimes a storage can be a solution. Sometimes the market is a it's an interesting storage dew and then and then.
And then there's different alternative under under analysis for the moment.
I'll leave it there and get back in the queue. Thank you.
Thank you thank you Robert.
Thank you.
Have a following question from Nelson <unk> with RBC capital Nelson. Please go ahead.
Great. Thanks, and good morning, everyone.
My one question.
But my first question relates to the growth path you you, obviously have a lot of secured projects a listed.
And I think the a new York solar projects are.
As opposed to go in to a or they're supposed to be completed in 2022 2023 can you just tell us how that progresses with those New York solar assets in terms of permitting and other requirements like are they on track to be completed in a 22 and 23 just a.
Wondering when you would move those projects over to the a construction ready stage.
Yeah.
They're in secure a staged are not yet inc. In under construction stage, but there's two important points. The first is we have accepted a.
Nice third a proposal for the conversion into Iraq. So that's good pictures and debt.
The proposal, we get was a was in line with what we we were expecting a.
End of last year, beginning of the year. When the question of Iraq was discussed it's good for the economy. It's good for the financing of the project and on the development side, it's going well even on one after the project we have a one of the 20 megawatt project with a very good news from trim off the cost of connection so so.
The final investment decision has not yet taken into just wasn't why it's not yet in a under construction, but its a online see true.
To be to be a to be a.
Connected next year into you're after.
Okay, that's great news.
And then my next question is just a quick follow up on the corporate Ppas in France.
So I think you have you don't have too many.
Wind facilities are megawatts.
Expiring in terms of PPA expirations. This year, a next year, but can you just talk about a.
Like whether you're currently selling or how many megawatts you currently selling a in.
In France, as a as merchants and do you actually have much more room to a to do corporate ppas given.
But theres not too many a PPA explorations could you just give some color on that versus I guess reserving some.
Capacity for future Repowering as well.
Okay.
Exactly a we have we are selling purely merchant a mega watt, which is just a one small site and this is essentially to the I D.
Two.
To learn and to work on on a.
Learn on hold a market is working we have done some shadow testing in the past. So first some back testing and then some shadow testing and then we are we are in real life. This year, but just with eight megawatt.
And so this is this is a full purely merchant we have three a contract which are sign two day, one with a with IBM, but I as I mentioned earlier I cannot disclose figures for this this.
Contract with a we have one with a whole range from 39 and a one was all shelf with 16 megawatt but this is not this is not merchant as a scope or a P. P and we have another one which is under advance negotiations for another another.
Roughly another 10 make out what a.
Site. So so this is this is exactly what we have a.
So I do not expect to have more than eight mega what a.
Purely merchant a.
During during this year or next year.
Okay.
Allison on debt Stefan speaking so if.
You want a I've heard of.
Visibility on that.
Encourage you to look at a presentation, where we do a five years out.
More on that and as we're saying in just a slide.
At this point in time, it's about 60% debt, we expect to Repower and the balance kind of be a mix of carpathia merchant going forward and a mindful will also be provided that our investor day.
This on this from the customer.
Orientation.
Thanks, Stefan Thanks for the color.
My last question.
It might also be addressed during the Investor day next month, but I just want to ask a ask a patrick in terms of a.
Growth through M&A versus developments and we've recently seen some assets a switch hands in a market.
Particularly with a Brookfield renewable with some strategic buyers.
I guess.
You acquired from solar assets in the U S to give you a footprint there and some meaningful a solar assets.
A given.
All the activity that's happening in the U S. Do you feel that you need to acquire any wind assets in the U S to kind a get you started there.
Can you just talk about.
Any kind of a potential.
A assets our geographies.
You feel a.
Any asset acquisitions.
It could help you with.
Yeah and the acquisition.
It has to be a way to access at a rate somewhere our strategic plan.
So we.
We are.
Firstly looking to two solar assets in the U S. But as you know we are we have a win win guys I would see an a and and and and we like this so so potentially we are also looking to do some some wind assets when it's a it's a way to accelerate a word divers.
So so sorry, Oh, a diversification and this is a this is something we are looking yes.
Okay, that's great I'll get back in the queue. Thank you.
Okay.
Thank you.
Next question comes from Mark Jarvi with CIBC Mark. Please go ahead.
And good morning, everyone.
Patrick He said that the index for actually a direct kind of met your expectations are you able to share any of the pricing on those contracts and whether or not they have inflation escalators or anything else you can share now that you've signed those contracts.
No I'm, not I'm not able to share that.
The price.
There is a Nick who I'm not able to share the price, but what I can tell you is that taking everything into account.
The cost of construction a few from today.
Production of the site a the optimization of the layout a.
A connection cost and all those things and and and and and the financing.
We have improved.
The the return expected in September 2019, when we bid. This project. So it's good for two reason one reason is debt less risk because of Iraq contracts and on the other sides of an improvement off of the return.
And does the Iraq, and making it a simpler product.
Enhance the financing.
The project because it makes it easier to finance or.
Yeah.
Or is it just more project optimization in terms of.
Cost per a connection.
I expect a capacity.
A blue we know maybe maybe some color on debt.
Its a Mike do you it will a it will certainly make the financing a.
Easier with a with a more simple contract approach.
And then can you just update us in terms of the financing tax equity.
You have to do it on a sort of a collection of assets do you do this on a on a.
One or two assets as they get closer to completion here and what's the sort of a strategy on tax equity and how far down on a road are you in terms of any negotiations in a conference level.
Be able to pull that altogether on time.
Confidence level is good a and a where we're.
We're not we're not a.
We don't need to be a to be advanced at this stage, so where we are on time.
Our net debt front.
And in terms of the approach.
We'll.
Likely a.
Consider a different approaches for our U S assets.
Depending on our strategy, we're looking at different types of financing, whether a project financing and or a combination with a balance sheet financing. So in the U S or a strategy might be a little bit different overall on the financing side than what we've done.
For example in France.
Okay.
And then on those corporate PVA I appreciate at this point yourself, a small component of your earnings and EBITDA.
Are there any sort of nuances or a risk to those contracts in terms of settlements minimum volume anything around like where your delivery point versus pricing.
Or just maybe help us understand if there is any sort of a risk that you have to manage from your perspective on.
Uh huh.
No.
Generally speaking all these contract or a P. S produced so we have no commitment of production. So it's really the same kind of risk then with EDF contract.
We have in one contract one of these contracts.
A.
See warranty off of the operation of the site because you understand that to the.
A customer is buying the electricity from a from one site and there is a marketing idea.
Behind it so they don't want to be a.
<unk> to be a debt if we do not operate correctly decides to do if we are lowered and I think it's 90% of availability, which it's never the case, obviously, a then they have to possibly to cancel the contract but a obviously we are not there. So so this is the only one but we have no delivery.
Warranty or think like this.
And and so no new additional risks from days contract.
Okay. Thanks for the answers Patrick and Brad I appreciate it.
Thank you.
Thank you. Your next question comes from Maggie Baidu with <unk>.
Capital markets <unk>. Please go ahead.
Hi, good morning.
Good morning, if we can follow up a on the asset sale in France can you maybe talk about a few considering other asset sales to help finance some of your a some of the larger growth projects that are coming down the pipeline.
The sale off of a blow on deck was a essentially.
Essentially a reason of a maintain.
Maintaining a.
A skills internally office for a small asset being 100 person renewable not exposed to cash.
Carbon pricing a anymore and all those things. So so this is this is one reason, but generally speaking you don't need a case in France. You know we are were also all the time evaluating if a partner even with a.
A another a T.
Financial a provider could be of interest to us a.
With if they have a lower cost of capital than Boralex, who we are we are all the time, a looking to this and and it's just a case in devaluation are.
You look to the French market.
And operator, you have a look to this and go through this process during the last a last year or so so we are we are also a screening this a possibility, but a nothing nothing other than debt.
Okay.
On a I don't want to take away a any of your thunder from the upcoming Investor day, but I'm. Just wondering if you can talk briefly about how you're thinking about your approach to project development a.
And your market share like in California, rather, yes jurisdictions do you think that you will need to adjust your sort of a pause.
That's a good development processes or bidding behaviors in those markets to be competitive.
Oh, yeah, yeah on the <unk>.
One side, we have developed a project in New York State with a with people some in New York Some in Ontario, some in Quebec.
So so so we can do and when you look to two other.
Pure organic developer a D.
Our many times doing debt remotely from somewhere in the U S. So we don't think we need a teams everywhere. So we need some local presence so soon but not a big win and we will try to see what was the crisis. We all know that a a lot of work could be done from from home.
So so so not a remotely this is the first point and in terms of bidding a we.
We will look to market, where like in a New York State. There is a there is an interesting a stray.
<unk> demand for project and they are contract, which are a with reasonable risk Sue. So sure were bidding stretches you wouldn't see not change a and and we will be disciplined on the on what we how.
How we build a model for the project and though we evaluate the risk.
On debt.
Yes.
Okay. Okay, that's great and just one last question as a follow up to that.
I guess youre, not really expecting a a major ramp up a lot.
Neither new hiring or development costs, a corporate costs at this point to support a sort of new expansions.
A we will I think again that will be a debt will be released on the on the investor day in June.
And presented a.
So I will I will ask you to be patient net on this part of the presentation.
Okay, all right looking forward so thank you.
Thank you.
Thank you. Your next question comes from Andrew Kuske with Credit Suisse. Andrew. Please go ahead.
Thank you good morning.
That's maybe a bit more of a philosophical longer term question and it really revolves around how you see batteries being part of the investment opportunity and then maybe also a part of the threat.
That exists.
For the business and just your positioning around that.
Mhm.
It's a it's a good question it's interesting indeed I think.
And we see we can see that in a.
In Europe in some market, we can see that already are in California, typically is a great connection and duck curve. The fact that the electricity prices a is changing the.
The shape of the price is changing during the day.
He is an opportunity for force storage a.
A question.
A question is how do you make money in all you've secured your investment. So so it's not a it's something which is a.
More close to cash.
Of merchant sales from my view than than what we have in the past was a ash produced a long term P. P. A.
But but it could be a long introduction to seat could be of interest to optimize existing sites with small investment to a mood.
Move production from one part of the day to another a and it's it depend of the market into a contract that you have so soon so this is the first point.
In term of in true a threat I'm not sure. It's it's it's more creating something a I think an opportunity to the electricity system than a threat because because it will it should smooth.
Uh huh, the electricity price strength a day, so I'm not a I think it will increase.
Capacity technically off the electricity system.
For a larger penetration of a variable renewable like wind and solar so I think a I think it's more opportunity than a threat.
That's very helpful color and context, and then maybe just focus on that opportunity do.
Do you foresee boralex pursuing some opportunities in relation to energy management, maybe out a commercial industrial level for a certain corporate customers with a rollout and deployment of batteries into the future.
Yeah.
It's exactly something we are we have starting in France at a small level. The same team is working on.
A defining and modeling the price was obviously to bring those team, but bundling the price for the bid for the tender.
For the ETF tender for the tender win a cooperate P. P is a is a is a available so if somebody wants to buy electricity like IBM like Orange day, the arguing to ISP and and we have to modernize that.
N a the management of our small eight megawatt merchant a production.
Production. So so all this is the same kind of data analysis.
Knowing how the market is moving and in and all this is a is linked to two so we have we have started this team in France and we're sharing this every day every month, we have a net date on that that the the.
Investment and development Committee of the company. So so even a in North America people are learning thanks to our experienced France is small, but it's the way to learn and not to take too much risk.
That's very helpful. Thank you.
Thank you.
A following question from Rupert <unk> with National Bank. Your line is now open.
Thank you. So in your prepared remarks, you talked about preparing bids for a.
New York auctions, just wondering if you can give us an update on where we're at in the process for the New York auctions.
What do you anticipate.
You might be able to do there and also same thing for France, where are we in the French RFP cycle.
Okay.
On the New York.
I will just comment on the the tier one there was there would be a two one a.
Okay and in a and after summer.
So a so we will we will bid the hundredth they need to make out what we bid last a the last auction and a we will we have work force see another year of development. So you can evaluate I think a whole much a organic project. We have we are able to.
True to developing a one year a like into a pass through we will be a this this a at this stage and a and we are also a evaluating eh the T for but a but this is a decision to close two debates to comment.
So this is a full new York state a on the French site.
The first.
Yeah.
Okay, I mentioned, a 100 day Nietzsche it was 100 and faulty sorry at the last bid. So it is not tons with a neat some sorry I made a mistake.
On the French site.
The six first rounds off of the tender if no if a if no been being done and so the government is the administration is discussing a what they called a ku the shaft, which is to the rules to bid and to end the rules a two to win so it's just a.
It has not yet been released so we are thinking debt for 2021.
The tender will come.
End of the summer beginning of the fall.
And and we're working to evaluate Oh, many project, we would be able to bid it will depend on the ku the shadows.
So that's that's the point in a and we are also a in friends we have still access for the approached a small say project the project office.
Less and less or equal to six O a buying less or equal to three megawatt turbine to the C. R 2017 that seventh to Europe, a mega watt hours. So so so we are playing the two games a in peril.
Okay, great. Thanks, and then.
Looking at your secured projects can you give us an update on that too.
A big one is the limekiln in line to a low hand, and the opportunity to move those to construction how far are you from.
A final investment decision on those projects.
I would say Atlanta, La it's more a question of weeks a b co said the decision from the course a data is a.
Find no.
A grid connection was put on the shelf, but it's still a it's it's it's still available and it's a has been already modified two seven to one megawatt and as you know we have a contract that we win nonetheless centers. So it's a so a question to see a finalized update everything and go go back.
Our board and a and and and decide a.
Some negotiation with the turbine suppliers also needs to be done a.
And for a line Kim.
The.
Considering the change in the.
In the the charges the access to the network charges to the use of system charges from the U K, a we have a apply a exactly one year ago in May 'twenty 'twenty four day extension of the of the site and a we have applied also for a modification of the <unk>.
<unk> of the turbine like every a to my knowledge every a Scottish project of a just a different operators has done this speakers have been a it by to tied to the change of the charges. So a there will be a I think a public hearing in June.
Nine Kim and then we could expect a depend off Oh diligent the Scottish.
Minister will be we could expect a next a six six to nine months a decision.
And again, there we already have the connection in our end, which is very important when you're a ignores a there. So this is a this.
This is a situation of lime kilns and.
There was some discussion last year about a potential a new CFT for onshore wind in the U K to my knowledge is not yet done but potentially this will also move into the next the next month's two throughout those two finalized a.
The economy makes up this a project and the financing of it.
Great. Thanks for the color I'll leave it there.
Thank you.
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Alright, well. Thank you everyone for your attention if you have any additional questions. Please call me at 514 to one three.
Zero for a five well make sure we quickly answer your question. So our next conference call to announce a second quarter results will be on Friday August six 2021.
And that mean time as we mentioned during this call. Please mark your calendar for our Investor Day on June 17.
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