Enel to Build 146 MW of Wind Capacity in Canada

Researched by Industrial Info Resources (Sugar Land, Texas)--Italian utility Enel S.p.A. (BIT:ENEL) (Rome, Italy) has been awarded two renewable-energy contracts to build 146 megawatts (MW) of wind generation in Alberta, Canada.

Through its U.S.-based subsidiary, Enel Green Power North America Incorporated (Andover, Massachusetts), Enel will develop two windfarms to supply power to the Alberta Electric System Operator (AESO) over a 20-year period. The 115-MW Riverview and Phase 2 of the 31-MW Castle Rock Ridge wind projects carry a total investment value of $170 million, and the new facilities are expected to enter service in 2019, according to a December 11 Enel statement.

The contracts will more than double Enel's capacity in Canada, which currently stands at just over 103 MW, and is "the first regulated renewable tender we have ever won in the country," said Antonio Cammisecra, the head of global renewable energy at Enel Green Power.

Riverview Wind and the second phase of Castle Rock Ridge -- the expansion of Enel Green Power's existing 76.2-MW Castle Rock windfarm -- are both located near Pincher Creek, Alberta. Once operational, the two facilities are expected to generate 555 gigawatt-hours per year. For more information, see Industrial Info's Castle Rock Ridge project report.

Alberta government officials on December 12 said they had chosen three companies that are expected to spend about $1 billion to develop four wind-power projects in southern Alberta capable of generating enough electricity for 255,000 homes. Earlier this month, the AESO launched its first tender under its Renewable Electricity Program, which was established as part of Alberta's Climate Leadership Plan, which aims to create a cost-efficient, cleaner and increasingly reliable energy system. The program calls for the development of 5,000 MW of renewable-generation capacity connected to the Alberta grid by 2030.

Click on the image at right for a graph showing Alberta's changing electricity market.

In addition to Enel Green Power Canada, winning bids came from Capital Power (TSX:CPX) (Edmonton, Alberta) for a 201-MW project; and EDP Renovaveis S.A. (ELI:EDPR) (Madrid, Spain), a subsidiary of Energias de Portugal (ELI:EDP) (Lisbon, Portugal) for a 248-MW project.

In Canada, Enel Green Power already operates two wind facilities -- the 76-MW Castle Rock Ridge windfarm, which entered service in 2012, and the 27-MW St. Lawrence/Massena facility in Newfoundland, which began operations in 2009. Collectively, Enel is has a presence in 23 U.S. states and two Canadian provinces with more than 3.6 gigawatts of capacity. In late November, Enel, through its renewable-energy subsidiary, Enel Rinnovabile S.A. de C.V. (Mexico City, Mexico), won the rights to develop four wind projects with a combined capacity of 593 MW in Mexico. For more information on the Mexico projects, see Industrial Info's November 30, 2017, article -- Enel Secures 593 MW of Wind Projects in Mexico.

In its 2018-2020 strategic plan, Enel said it's targeting 24.6 billion euros (US$29.2 billion) in capital expenditure over the next three years, with a significant amount--5.3 billion euros (US$6.3 billion) versus 4.7 billion euros (US$5.6 billion) in the previous plan--earmarked for digital technologies such as smart grids and smart meters for energy distribution. The company also is aiming for earnings before interest, taxes and amortization (EBITDA) of 3.3 billion euros (US$3.9 billion) in 2020, a 32% increase from its EBITDA in 2017.

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