The PPAs relate to the purchase and sale of renewable energy credits ("RECs") generated by Greengate’s 150 MW Halkirk I Wind Farm Project and 300 MW Blackspring Ridge I Wind Power Project, both located in Alberta, Canada.
This is the third largest wind energy transaction ever executed by a California utility. The PPAs will be used by PG&E for compliance under the California renewable portfolio standard.
Under the terms of the three PPAs, PG&E will purchase all the RECs associated with the expected 1,400 GWh per year of renewable energy generation by the two Greengate projects at fixed prices for 20 years. This is an essential component of the projects’ economics and financing structure, and is in addition to the revenue that will be generated from the sale of power in Alberta’s power market.
Upon completion in 2012, the Halkirk I Wind Project is expected to be Alberta’s largest operating wind energy project with a total generating capacity of 150 MW. The Blackspring Ridge I Wind Project, with a total generating capacity of 300 MW, is expected to be Canada’s largest operating wind energy project upon completion in 2013. Combined these two projects totaling 450 MW will increase Alberta’s installed capacity of wind energy generation by more than 50% compared to the province’s current 806 MW of installed capacity.
"Our world-class projects and team, including our advisors in California, made this transaction possible," said Dan Balaban, President and CEO of Greengate. "With these 450 MW of contracted projects, we look forward to substantially increasing Alberta’s installed capacity of wind energy generation."
About Greengate Power Corporation
Greengate is a privately held renewable energy project developer based in Calgary, Alberta, Canada. It is focused on the development of high quality wind energy projects across Alberta with access to existing transmission and supported by long-term fixed-price agreements. Greengate is currently developing 1,550 MW of wind energy projects on approximately 200,000 acres of private land. Greengate’s vision is to be Canada’s largest pure-play renewable energy producer.