Capital Power’s 202MW first phase of the Whitla wind project in southern Alberta, Canada, has started operations.
The company said it will proceed with the 97MW second phase of Whitla, with construction slated to start in 2021.
The company is also on track to complete its 150MW Cardinal Point wind farm in the first quarter of next year.
Capital Power president and chief executive Brian Vaasjo said: “The growth from the recent acquisition of Goreway Power, addition of Whitla Wind 1 and the expected completion of the Cardinal Point wind project early in 2020 will contribute to a 12% increase in our adjusted funds from operations (AFFO) in 2020 based on the midpoint of our $500m to $550m target range.
“The growth from these new assets has allowed us to extend our dividend growth guidance out to 2022.”
Whitla Wind 1 is expected to provide adjusted earnings before interest, tax, depreciation and amortisation of $27m in its first full year of operation, according to Capital Power.
In December 2017, Whitla Wind 1 was one of four successful wind projects that was awarded a 20-year contract by Alberta’s grid operator.
When operational Whitla Wind 2 will generate carbon credits that can be used to hedge against Capital Power’s carbon compliance costs from its Alberta thermal generation facilities.
The developer said it is in active discussions with commercial and industrial customers for renewable offtake contracts from Whitla Wind 2.