Capital plans New Frontier
99MW wind farm in North Dakota to go ahead after securing long-term PPA
Capital Power will start construction work soon on the 99MW New Frontier wind farm in North Dakota, after securing a power purchase agreement (PPA) covering 87% of the facility's output.
The company will swap the market revenue from a fixed volume of wind generation for a fixed-price payment under a 12-year contract with an unnamed US financial institution.
Capital Power said the agreement will facilitate long-term predictable revenues, which will allow New Frontier to secure renewable energy tax equity financing.
The Canadian company is in the final stages of selecting a turbine supplier for the project, which is expected to cost $145m. Commercial operation is anticipated to start in December next year.