Capital Power continues to deliver successful contracted renewable projects
Capital Power Corporation (Capital Power or the Company) announced its New Frontier Wind project, located in North Dakota, began commercial operation on December 21, 2018. The construction of the 99 megawatt facility was completed on-schedule and below its original project cost estimate of approximately $182 million (US$145 million).
On December 31, 2018 Capital Power received approximately $125 million (US$92 million) in net tax equity financing from J.P. Morgan in exchange for Class A interests of a subsidiary of the Company.
Capital Power 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, Capital Power 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.
“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.”