ALLETE Clean Energy, a wholly owned subsidiary of ALLETE Inc., is further highlighting the 100 MW wind farm it plans to build in North Dakota as part of Xcel Energy’s newly announced plans to bring more wind energy to the Upper Midwest.
Under development since 2011, the Clean Energy 1 project, located north of Glen Ullin in Morton and Mercer counties, has been permitted by the North Dakota Public Service Commission and has landowner agreements in place. Construction and completion of the project are expected to take place in 2018 and 2019, respectively.
ALLETE Clean Energy and Xcel Energy have signed a 20-year power purchase agreement, which is still subject to regulatory approval.
To qualify for federal renewable energy production tax credits (PTCs), the project may use a share of wind turbines ALLETE Clean Energy purchased in 2016 in order to meet safe harbor standards. The $100 million investment in safe harbor turbines allows the company to pursue its three-pronged PTC strategy, which includes building and operating new wind farms based on long-term PPAs, building wind farms for other companies for a development fee or a sale price, and refurbishing its existing wind farms while extending PPAs.
ALLETE Clean Energy also has PPAs with Xcel Energy through its Chanarambie/Viking and Lake Benton wind farms in Minnesota.
When Clean Energy 1 is complete, ALLETE Clean Energy will own and operate roughly 640 MW of wind generation capacity in five states.