ALLETE Clean Energy, a wholly-owned subsidiary of ALLETE Inc. (NYSE: ALE), today announced its plan to build, own and operate a 100-megawatt wind farm in Morton and Mercer counties in North Dakota that will supply electricity to Xcel Energy under a signed power purchase agreement.
Under development since 2011, the Clean Energy 1 project located north of Glen Ullin, North Dakota, has been permitted by the North Dakota Public Service Commission and has landowner agreements in place. Construction is expected to begin in 2018 under a 20-year power purchase agreement between ALLETE Clean Energy and Xcel Energy. The project will be built with the latest wind turbine technology to maximize production and is expected to be complete in 2019. The PPA is subject to regulatory approval.
To qualify for federal renewable energy production tax credits, the project may utilize a share of wind turbines ALLETE Clean Energy purchased in 2016 that meet the standards for the tax credit "Safe Harbor" provision. The $100 million investment in safe harbor turbines allows ALLETE Clean Energy to pursue its three-pronged PTC strategy that includes building and operating new wind farms based on long-term PPAs, building wind farms for other companies for a development fee or a sale price, and refurbishing its existing wind farms while extending power sales agreements.
ALLETE Clean Energy also supplies wind power to Xcel Energy through purchase agreements at ALLETE Clean Energy's Chanarambie/Viking and Lake Benton wind farms in Minnesota.
"We are excited to partner with Xcel Energy to deliver additional low-cost wind resources to serve their customers," said Allan S. Rudeck Jr., president of ALLETE Clean Energy. "This additional PPA with Xcel Energy demonstrates ALLETE Clean Energy is an established and trusted brand in the renewable energy market that is executing its multifaceted growth strategy on a national level. We will work closely with area landowners, county officials and state regulators as we harness North Dakota's world-class wind resources."
Source: ALLETE, Inc.
Date: Mar 16, 2017