Jan 5 2010
Minnesota Power, an ALLETE company, has purchased a 465-mile direct current transmission line from the Square Butte Electric Cooperative for approximately $70 million. The 250-kilovolt line purchased by Minnesota Power connects its Arrowhead Substation in Hermantown, Minnesota with Center, North Dakota.
The transmission line was acquired by Minnesota Power for advancing its long-term plan of bringing more renewable energy into its network as well as for the development of the company. New wind generation facilities in North Dakota are being planned by the company and it aims to deliver the renewable energy through this DC line to its customers.
Minnesota Power has started preliminary works for its upcoming wind facility, Bison wind farm, which is to be located near New Salem, North Dakota. This 75-megawatt facility will be constructed in two phases. The project will comprise a total of 33 turbines with each turbine having 2.3 MW capacity. By the end of 2010, first phase of the project with 16 turbines is scheduled to commence operations.
Don Shippar, ALLETE CEO, said that this acquisition of DC transmission line demonstrates the company’s commitment for developing wind energy as well as it shows the company’s desire to provide long-term value to its shareholders and customers. Shippar added that the purchase will enable the company to deliver renewable energy cost effectively to its customers. Minnesota State’s mandate requires that 25% of the company’s energy production should be from renewable sources by the year 2025 and this purchase will support the company’s effort to meet it.
Minnesota Power has received written approvals for the purchase of the DC line from Federal Energy Regulatory Commission and Minnesota Public Utilities Commission. Though the central North Dakota region has abundant wind resources for the development of wind energy project, transmission line shortage for evacuating the power exists.
Eric Norberg, Minnesota Power’s Senior Vice President of Strategy and Planning, said the industry is facing challenges in transporting renewable energy and this purchase agreement enables the company to be a leader in long distance wind power transport.
Source: www.mnpower.com