Capital Power Corporation has announced that’s its North Dakota New Frontier Wind project has officially begun commercial operation. What’s more is that construction of the 99-MW facility was completed on-schedule and below its original project cost estimate of about U.S.$145 million.
Capital Power says it will operate New Frontier Wind under a 12-year fixed price contract with an investment grade U.S. financial institution covering 87% of the facility’s output. Under the contract, the company 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.
On December 31, 2018 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 the company.
“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,” said 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.”