After Capital Power Corp. inked an agreement to sell 87% of the electricity generated from the yet to be constructed New Frontier Wind project, the Calgary-based company is moving to immediately begin work on the 99 MW project.
Located in McHenry County in North Dakota, New Frontier is expected to cost $182 million to build. Capital Power says it’s in the final stages of choosing a wind turbine supplier. The company expects the project to begin commercial operations in December 2018.
The offtake agreement is under a 12-year fixed price contract with an investment grade US financial institution.
The contract, executed on August 29, stipulates that Capital Power 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 New Frontier Wind to secure renewable energy tax equity financing and provide Capital Power the opportunity to complete its second wind development project in the growing US renewables market.