Edmonton, Alberta-based Capital Power Corp. has secured a long-term contract for its 99 MW New Frontier Wind project in North Dakota.
Capital Power will operate New Frontier Wind under a contract with an investment-grade U.S. financial institution. The agreement will cover 87% of the facility’s output. Under the contract, which was executed on Aug. 29, Capital Power will swap the market revenue from a fixed volume of New Frontier Wind’s generation for a fixed-price payment over a 12-year term. The agreement will secure long-term predictable revenues, allowing the project to secure renewable energy tax equity financing, the company says.
Capital Power says the development of the approximately C$182 million wind farm, located on 10,700 acres of privately owned land in McHenry County, is proceeding immediately. The company is in the final stages of selecting a turbine supplier, and commercial operations are expected in December 2018.
Capital Power develops, acquires, operates and optimizes power generation from a variety of energy sources. The company owns approximately 4.5 GW of power generation capacity at 24 facilities and is pursuing contracted generation capacity throughout North America. New Frontier Wind represents its second wind development in the U.S.
“New Frontier Wind further advances our strategy of adding shareholder value by growing contracted cashflows by executing on the company’s development activities,” says Brian Vaasjo, president and CEO of Capital Power.