Capital Power LP, Samsung Renewable Energy Inc. and Pattern Renewable Holdings Canada ULC have entered into a limited partnership for the development, construction and operation of a 270 MW wind project to be known as K2 Wind Ontario.
Formerly referred to as the Kingsbridge II Wind Power Project, K2 will continue to be developed in the township of Ashfield-Colborne-Wawanoshin in southwestern Ontario. The project has an expected capital cost of C$750 million to C$900 million, most of which will be funded through project financing.
The Ontario Power Authority has signed a power purchase agreement (PPA) for the project, the completion of which is subject to obtaining necessary corporate approvals, the execution of definitive agreements and the receipt of regulatory approvals. Construction is expected to begin in 2013, with commercial operation scheduled for 2014.
At the commencement of commercial operation, each of the three partners will have an equal economic interest in the project. Capital Power will contribute the project lease agreements and development work completed to date, while Samsung and Pattern will contribute the PPA and transmission access rights.