Enbridge Inc. (TSX: ENB) (NYSE: ENB) on Nov. 25 announced the acquisition of a 100% interest in the 103-MW New Creek Wind Project in West Virginia from EverPower Wind Holdings LLC.
Enbridge’s total investment is approximately US$0.2 billion. Located in Grant County, West Virginia, New Creek Wind will be made up of 49 Gamesa G97/G90 turbines and is targeted to be in service in December 2016.
“With strong fundamentals and commercial underpinnings, the New Creek Wind Project is a strong fit within our low-risk value proposition, and advances a key corporate priority of growing our renewable generation platform,” said Vern Yu, Senior Vice President, Corporate Planning and Chief Development Officer, Enbridge Inc. “We welcome the relationship with EverPower, a safe and community-focused developer, owner and operator of U.S. wind projects.”
The project is backed by renewable energy credit (REC) sales and off take agreements with fixed pricing through mid-and-long-term contracts. New Creek will be constructed under a fixed-price engineering, procurement and construction (EPC) agreement with White Construction Inc. Gamesa will provide turbine operations and maintenance (O&M) services under a five-year fixed price contract, following which Enbridge will operate.
Including this acquisition, Enbridge has invested approximately C$5 billion in renewable power generation and transmission since 2002. Enterprise-wide, the company now has interests in nearly 2,000 MW of net renewable generating capacity operating, secured or under construction.
Enbridge operates the world’s longest crude oil and liquids transportation system across Canada and the U.S., and has a significant and growing involvement in natural gas gathering, transmission and midstream business, as well as an increasing involvement in power transmission. Enbridge owns and operates Canada’s largest natural gas distribution company, serving residential, commercial, and industrial customers in Ontario, Quebec, New Brunswick and New York State. Enbridge has interests in nearly 2,000 MW of net renewable and alternative generating capacity, and continues to expand into wind, solar and geothermal power.
Gamesa announced Nov. 25 that it will handle the transport, installation and commissioning of 45 of its G90-2.1 MW turbines and four of its G90-2.0 MW turbines at the New Creek facility. The turbines are slated for delivery over the course of 2016 and the project is expected to be up and running by the end of next year. In addition, the company will operate and maintain the wind farm for five years.
This agreement marks the start of the firm’s business relationship with Enbridge. It also reinforces Gamesa’s strategy in the U.S. where its solid and well-diversified customer base has translated into the installation of 4,150 MW to date. In the first nine months of this year, the U.S. represented 11% of the company’s sales volumes (by MW).