Algonquin Power & Utilities Corp. (TSX: AQN) has agreed to jointly develop a 150-MW, construction-stage wind project in Michigan with Renewable Energy Systems Americas Inc.
The Deerfield wind power project is located in central Michigan and is being constructed on approximately 20,000 acres of land leased from a land owner group, Algonquin said in an Oct. 19 statement. The project will utilize proven turbine technology comprised of 44 Vestas V110-2.0 wind turbines and 28 Vestas V110-2.2 turbines and is estimated to generate 555.2 GWhrs annually. Deerfield has a 20-year power purchase agreement with Wolverine Power Supply Cooperative, a local electric distribution utility serving about 260,000 customers in Michigan.
The joint venture further expands Algonquin’s presence in the renewable energy space. The total project cost is expected to be approximately US$303 million. Non-recourse project financing will be arranged by the joint venture including approximately US$151 million of tax equity. The project is expected to achieve commercial operation at the end of 2016 with its first full year of operation being 2017.
“We are pleased to partner with Renewable Energy Systems Americas Inc. on the Deerfield wind project. This project demonstrates our capacity to create long term shareholder value through investments in renewable energy generation projects,” said Algonquin Chief Executive Officer Ian Robertson.
Renewable Energy Systems Americas (RES Americas) had announced Jan. 9 that its subsidiary RES America Developments Inc., had entered into a 20-year power purchase agreement (PPA) with Wolverine Power Supply Cooperative for 114 MW of wind energy and associated renewable energy credits in the Thumb area of lower Michigan. The wind power will be sourced from the Deerfield Wind Energy project, which is located in Huron County, Michigan.
Algonquin Power & Utilities is a North American diversified generation, transmission and distribution utility. The Distribution Group operates in the United States and provides rate regulated water, electricity and natural gas utility services to over 489,000 customers. The non-regulated Generation Group owns or has interests in a portfolio of North American-based contracted wind, solar, hydroelectric and natural gas powered generating facilities representing more than 1,050 MW of installed capacity. The Transmission Group invests in rate regulated electric transmission and natural gas pipeline systems in the U.S. and Canada.