Allete Clean Energy, a unit of Allete Inc. (ALE), announced its plan to build, own and operate a 100 MW 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.
Allete Clean Energy owns and operates wind generation facilities in Minnesota, Iowa, Oregon and Pennsylvania that were purchased from other companies. It also developed the 107.5 MW Thunder Spirit wind farm in North Dakota, which was sold to Montana-Dakota Utilities in 2015. Allete Clean Energy in January 2017 announced a plan to expand Thunder Spirit to about 150 MW through a PPA with Montana-Dakota Utilities, which also has an option to purchase the expansion.
When Clean Energy 1 is complete, Allete Clean Energy will own and operate about 640 MW of wind generation capacity in five states while adding a long term PPA to its sales portfolio.
Allete Clean Energy was established in 2011 to acquire or develop capital projects to create energy solutions by way of wind, solar, biomass, hydro, natural gas, shale resources, clean coal technology and other emerging innovations.
Allete Inc. is an energy company headquartered in Duluth, Minnesota.