CALGARY, Alberta & MONTREAL, Quebec Nov. 3, 2011 – Enbridge Inc. (TSX:ENB) (NYSE:ENB) and EDF Renewables Inc. announced today that they have signed an agreement under which Enbridge will invest about $330 million to acquire a 50 per cent interest in and become a co-owner of the 300-megawatt (MW) Lac Alfred Wind Project.
“The Lac Alfred Project marks Enbridge’s entree into the growing Quebec wind energy market, the second largest in Canada,” said Al Monaco, President, Gas Pipelines, Green Energy & International. “Quebec is an attractive investment environment for us given the province’s wind capacity target of 4,000 MW by 2015, the availability of long term power purchase arrangements there, and the province’s accessible transmission infrastructure.
“The project advances Enbridge’s strategy to invest in renewable energy infrastructure as part of a sustainable power generation platform with solid returns, stable cash flow and environmental benefits,” Mr. Monaco added. “We’re delighted to partner with EDF Renewables Inc., a proven wind energy developer and operator.”
“EDF Renewables is pleased to launch this partnership and engage in a co-ownership relationship with Enbridge,” said Tristan Grimbert, President and CEO of EDF EN North America. “As an integrated operator we take a balanced approached to our project portfolio and this agreement provides an opportunity to further our ambition as a world-class renewable project developer. The mutual confidence and collaboration between our two companies demonstrates solid business practices and secures a strong Quebec and Canadian presence.”
The project, located 400 kilometres north east of Quebec City in Quebec’s Bas-Saint-Laurent region, will consist of 150 wind turbines supplied by REpower and made with locally-manufactured blades, towers and converters. Construction is slated to take place in two phases: Phase 1, which began in June 2011, is expected to be finished in December 2012, while Phase 2 is expected to be completed in December 2013. When fully operational, the project will generate enough clean electricity to meet the needs of about 70,000 homes.
EDF Renewables Inc. will continue to lead and manage the construction phase under a fixed price, turnkey engineering, procurement and construction (EPC) agreement. EDF Renewables Inc.’s operation and maintenance affiliate, enXco Service Canada Inc., will provide long-term operations and maintenance (O&M) services. Hydro-Quebec will buy the power under a 20-year power purchase agreement (PPA) and construct the 30-kilometre transmission line to connect the project to the grid under an interconnection agreement.
The transaction is subject to customary conditions precedent, including the consent and approval of Hydro-Quebec Distribution and Hydro-Quebec TransEnergie.
Lac Alfred Wind Project at a glance:
|Location:||Bas-Saint-Laurent region of Quebec|
|Capacity Peak:||300 MW|
|Annual Yield:||Almost 1 million MWh|
|Equivalent Homes Served:||About 70,000|
|Technology (turbines):||150 REpower 2-MW turbines|
|Construction:||Fixed price, turnkey EPC contract|
|Energy Purchaser:||Hydro-Quebec (20 year agreement)|
|Construction:||Began – June 2011/Phase II Completion- December 2013|
|Jobs created:||More than 150 jobs in the community during construction; up to 15 local, full-time operational jobs|