Feb 8 2011
The California Public Utilities Commission has granted approval for three power purchase agreements between Greengate’s subsidiary companies, Halkirk I Wind Project , Blackspring Ridge IB Wind Project , Blackspring Ridge IA Wind Project and Pacific Gas and Electric Company (PG&E) for the generation of 450 MW.
The 20 year PPA’s are for the acquisition and sale of renewable energy credits, which would be generated by the 300 MW Blackspring Ridge I and the 150 MW Halkirk I Wind Projects located in Alberta in Canada. This transaction is the third largest transaction in the wind energy segment undertaken by a utility in California. PG&E would utilize the PPAs to comply with the renewable portfolio standard set by California.
PG&E would buy all the RECs related to the annually generated 1400 GWh renewable energy by the two projects undertaken by Greengate at fixed prices for a period of 20 years. This is a critical part of the financing and economic structure of the project, apart from the revenue made from the power sold in the power market in Alberta. The 300MW Blackspring Ridge I Wind Project would be the largest wind energy project and is expected to be completed by 2013. The Halkirk I Wind Project once completed in 2012 is purported to be the largest wind energy project in Alberta with a 150 MW generation capacity. The energy generated from both these projects would boost the installed capacity of wind energy generation by over 50% in contrast to the current capacity of 806MW in Alberta.
Dan Balaban, the CEO and President of Greengate, has stated that the company was eager to increase the installed capacity of wind energy generation in Alberta and that such a transaction would be possible only with the help of his advisors in California and his team members.