High-quality projects, long-term PPAs, risk management

Northland aims to increase shareholder value by developing high-quality projects supported by long-term power purchase agreements while carefully managing development risks. We focus on green (renewable energy) and clean (low emissions) projects, for which demand is growing and off-take prices are attractive.

In addition to long-term premium returns through electricity sales, we will continue to generate value through facility management fees and performance incentives.

Northland is ideally positioned to benefit from three trends:

• Continued long-term demand growth for electricity in our markets
• Growth of the independent power producer and the use of long-term PPAs by government entities
• Government policy initiatives to encourage development of clean and green energy sources

Key to our continued success will be Northland’s ability to:

• Identify and tie up competitive sites for future projects
• Secure long-term PPAs under government FIT and standard-offer programs and obtain necessary permits and approvals
• Correctly forecast the ingredients of project success (revenues, operating costs, capital costs, financing-related costs) and manage to our forecasts through the development and construction processes.

Ontario, Quebec and Saskatchewan, the three Canadian provinces in which we are most active, all provide ample opportunities for growth through new projects, including those in the approval and construction processes. We are reviewing opportunities in other provinces, primarily through partnering or acquiring projects from small developers. Northland also continues to monitor opportunities in the United States and western Europe.

Northland has experience and expertise in a number of technologies, including natural-gas-fired (simple-cycle, combined-cycle and cogeneration), biomass, hydro, wind and solar power. Our knowledge of these technologies enables us to pursue opportunities across a broad spectrum of clean and renewable projects as PPAs are offered for diverse technologies.