Duluth, Minn.-based ALLETE Clean Energy plans to construct, own and operate an 80 MW wind project near Great Falls, Montana, that will supply electricity to NorthWestern Energy under a newly signed signed power purchase agreement (PPA).
ALLETE Clean Energy, which acquired the South Peak project from Peak Clean Energy, will manage construction of the wind facility, scheduled to be online by late 2019. Energy from South Peak will be delivered to NorthWestern Energy customers through a 15-year PPA via a direct connection to NorthWestern’s transmission grid.
“We’re excited to be working with our newest customer in NorthWestern Energy and hope this project leads to more opportunities together in the future,” says Al Rudeck, president of ALLETE Clean Energy. “This expansion of our portfolio across the high-quality northern wind corridor demonstrates the power of our growth strategy, which leverages our capabilities to build lasting partnerships that advance, construct and operate renewable facilities across North America.”
The South Peak project, made up of GE wind turbines, will be built adjacent to NorthWestern Energy’s existing Spion Kop wind facility. The project also has landowner agreements and design elements in place.
“We are delighted that ALLETE Clean Energy has selected GE’s advanced technology 2.X MW platform for this project, along with a 15-year servicing agreement,” comments Pete McCabe, president and CEO of GE’s onshore wind business. “ALLETE shares our unwavering commitment to renewable energy, and this is another great example of how we can work together to deliver affordable, sustainable power to communities across the U.S.”
To qualify for the federal production tax credit (PTC), the project will use a share of wind turbines ALLETE Clean Energy purchased in 2016 that meet the standards for the PTC “safe harbor” provision. The safe harbor turbine investment allows ALLETE Clean Energy 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 through a build-transfer structure, and refurbishing existing wind farms while extending PPAs.
