ALLETE Clean Energy to develop 100-MW project to sell wind power to Xcel under 20-year PPA

Written By: Stratton Report
March 16, 2017


On March 16, ALLETE Clean Energy announced its plan to build, own and operate a 100-MW wind farm in Morton and Mercer counties in North Dakota that will supply electricity to Xcel Energy under a 20-year PPA.

According to ALLETE, the Clean Energy 1 project located north of Glen Ullin, North Dakota, has been permitted by the North Dakota Public Service Commission and has landowner agreements in place. Construction is expected to begin in 2018 and is expected to be complete in 2019. The PPA is subject to regulatory approval.

ALLETE Clean Energy notes it also supplies wind power to Xcel Energy through purchase agreements at ALLETE Clean Energy’s Chanarambie/Viking and Lake Benton wind farms in Minnesota.

Allan S. Rudeck Jr., president of ALLETE Clean Energy remarks:

We are excited to partner with Xcel Energy to deliver additional low-cost wind resources to serve their customers. This additional PPA with Xcel Energy demonstrates ALLETE Clean Energy is an established and trusted brand in the renewable energy market that is executing its multifaceted growth strategy on a national level. We will work closely with area landowners, county officials and state regulators as we harness North Dakota’s world-class wind resources. 

Chris Clark, president, Xcel Energy-Minnesota, North Dakota, South Dakota observed: “Wind prices are at historic lows and we’re taking advantage of these low-cost projects to transition our energy fleet and secure these prices for our customers. Our customers count on us to provide reliable and affordable energy and this investment will do just that.”

ALLETE Chairman, President and CEO Alan R. Hodnik commented: “ALLETE Clean Energy is demonstrating that it can build shareholder value while answering the nation’s call to transform the energy landscape. ALLETE’s consolidated market share of wind power capacity has grown to 16th in the U.S. and that growth is poised to continue as the ACE safe harbor turbine strategy has improved an already strong deal-flow pipeline and connected ALLETE Clean Energy with new industry partners nationwide.”

ALLETE Clean Energy claims that when Clean Energy 1 is complete, the firm will own and operate about 640 megawatts of wind generation capacity in five states.