The equity funding raised by Allete Clean Energy will be used to support two of its wind farms that include the Glen Ullin Energy Center and the South Peak wind farm
Glen Ullin Energy Center started operations last month. (Credit: Pixabay/lloorraa)
Allete Clean Energy, a subsidiary of Allete, has raised tax equity funding to support its 106MW Glen Ullin Energy Center wind farm in North Dakota.
The deal took place last month and the tax equity funding was raised by selling its Class A passive membership interests in Great American West Wind to JPM Capital. The deal will also help Allete Clean Energy to support its 80MW South Peak wind site in Montana.
While Glen Ullin Energy Center started operations last month, while the South Peak Wind site is expected to begin generating energy in the next few weeks.
Power generated from the Glen Ullin Energy Center will be sold to Xcel Energy
Located about 40 miles (64.3km) west of Bismarck in Morton and Mercer counties, the power generated from the Glen Ullin Energy Center wind project is delivered to Xcel Energy in the Upper Midwest under a 20-year power purchase agreement (PPA). Powered by GE wind turbines, the energy generated from the wind farm will be enough to power 55,650 homes.
Glen Ullin Energy Center is Allete Clean Energy’s second wind project in North Dakota and the first to be owned and operated. The company also developed the 107.5MW Thunder Spirit wind project in North Dakota, which in 2015, was sold to Montana-Dakota Utilities.
Power from the South Peak wind farm will be sold to NorthWestern Energy under a 15-year PPA. Upon the beginning of the South Peak’s commercial operations, JPM Capital will purchase additional Class A passive interests in the wind farm.
Allete Clean Energy president Allan S. Rudeck Jr. said: “This tax equity deal highlights the appeal of our wind energy growth strategy among investors. The combination of high-quality projects like Glen Ullin and South Peak, respected counterparties, the latest technology, high-quality wind resources, and our development experience and relationships have led to success in the tax equity market. We plan to carry this winning formula forward on future projects.
“Transactions such as Great American West Wind help build the low-carbon economy of the future. The clean-energy projects they support also bring immediate and substantial economic benefits to the areas where they operate and the customers they serve.”