Alberta-based Capital Power Corp. has announced that its New Frontier Wind project, located in North Dakota, began commercial operations on Dec. 21.
Construction of the 99 MW, Vestas-powered facility was completed on schedule and below its original project cost estimate of approximately $145 million.
On Dec. 31, Capital Power received approximately $92 million in net tax equity financing from J.P. Morgan in exchange for Class A interests of a subsidiary of Capital Power.
Capital Power will operate New Frontier Wind under a contract with an investment-grade U.S. financial institution covering 87% of the facility’s output. Under the contract, 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.
“Utilizing our in-house construction capabilities, the construction of New Frontier Wind was completed in eight months and is another successful renewable development project in the United States,” says Brian Vaasjo, president and CEO of Capital Power. “With everything in place and completion below budget, New Frontier Wind is set to exceed our original return expectations.”