The 105MW project has an expected cost of up to $340m, and is anticipated to enter commercial operation in the fourth quarter of 2012.
Under the terms of the FIT program, the contracted price for power at commercial operation will be $135 per megawatt hour escalated by inflation (CPI) between the contract signing date and commercial operation date. Thereafter, 20%of the contract price will escalate annually at inflation (CPI) throughout the 20-year term.
Management of Capital Power expects that PDNW will be funded in conjunction with the company’s overall financing plan, and be consistent with its commitment to maintaining its investment-grade credit ratings. Capital Power currently has $1.2bn in credit facilities with approximately $1bn available for use.
Construction of the project will be subject to regulatory approvals, including completion of Ontario’s Renewable Energy Approval (REA) process.
The project is being proposed in an area that covers the Ontario counties of Norfolk and Haldimand. Capital Power has optioned lands totaling over 8,900 acres in this area and the company is continuing the consultation process with stakeholders through the REA process.
Brian Vaasjo, president and CEO of Capital Power, said: “The Port Dover & Nanticoke Wind Project continues our successful execution of Capital Power’s growth strategy.
“Combined with the recently announced contract for the Quality Wind Project in British Columbia, Capital Power will be investing nearly $800m into wind projects with contracted cash flows of at least 20 years in duration.”
