Enbridge Inc. ENB acquired a 100% interest in the 103-megawatt (MW) New Creek Wind Project for a total value of about $0.2 billion from independent U.S. renewable energy developer, EverPower Wind Holdings, LLC. However, the company’s shares fell 2.3% following this announcement.
New Creek Wind Project, which is located in Grant County, WV, will consist of 49 Gamesa G97/G90 turbines. The project is expected to be commissioned by Dec 2016.
The project is supported by renewable energy credit (REC) sales and off take agreements with fixed pricing through mid- and long-term contracts.
The project will now be constructed in association with White Construction Inc. under a fixed-price engineering, procurement and construction (EPC) agreement. Gamesa will be responsible for turbine operations and maintenance (O&M) services under a five-year fixed price contract. Thereafter, Enbridge will operate the project.
Since 2002, Enbridge has invested about CAD $5 billion in renewable power generation and transmission. This amount is inclusive of the latest acquisition. Moreover, the company now has a total interest in about 2,000 MW of net renewable generating capacity operating, secured or under construction.
The latest acquisition is a perfect fit to the company’s low-risk value proposition. The New Creek Wind Project boasts strong fundamentals and commercial underpinnings. Hence, the project should support Enbridge’s corporate priority of growing its renewable generation platform.
Enbridge is an energy transportation and distribution company with operations mainly in the United States and Canada. The company reports through five segments namely – Liquids Pipelines, Gas Distribution, Gas Pipelines, Processing and Energy Services, Sponsored Investments and Corporate.
Enbridge carries a Zacks Rank #4 (Sell). Some better-ranked players from the energy sector are Energy Transfer Equity, L.P. ETE, ReneSola Ltd. SOL and Boardwalk Pipeline Partners, LP BWP. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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