Enbridge (NYSE: ENB) and First Solar (Nasdaq: FSLR) have entered into an agreement to expand the Sarnia Solar Project in Ontario, Canada, from 20 megawatts of capacity to 80 megawatts (MW), with a total system cost of approximately CDN $300 million for the expansion.
When completed in the second half of 2010, it is expected to be the largest photovoltaic solar energy facility in North America.
Enbridge and First Solar announced in October an agreement for Enbridge to acquire the initial 20 MW solar energy project that First Solar developed at the Sarnia site. This project achieved full commercial operation on December 7, 2009.
"We’re delighted to further strengthen our relationship with First Solar," said Patrick D. Daniel, President and CEO, Enbridge, Inc. "First Solar has delivered the initial 20 MW as committed–demonstrating their strong technical competence combined with attention to meaningful community engagement and corporate social responsibility practices that align with our own values.
"Enbridge has made significant strides in growing its green energy business in 2009. With this investment, we will have interests in more than 470 MW of green power capacity from our five wind energy projects, expanded solar facilities, four waste heat recovery facilities and the world’s first commercial application of hybrid-fuel cell technology."
"Our increased investment in the Sarnia Solar Project maintains risk and return characteristics which are fully consistent with Enbridge’s low-risk business model, and similar to our crude oil pipeline business," Daniel said. "The expansion of the Sarnia Solar Project will take advantage of the capacity of the Sarnia site to accommodate additional capacity. Following on our recently announced wind energy project, the Sarnia solar expansion provides a good balance in our renewable energy portfolio between solar and wind."
Subject to the satisfaction of certain conditions precedent, First Solar will construct the solar project for Enbridge under a fixed price engineering, procurement and construction contract, utilizing its thin film photovoltaic technology. First Solar’s advanced thin film technology has been deployed in 1.5 gigawatts of installations in the U.S. and Europe.
The 60 MW phase of the project is expected to begin construction in December and be completed by December 2010. At 80 MW, Enbridge expects the Sarnia Solar Project will generate enough power to meet the needs of over 12,800 homes and help to save the equivalent of approximately 39,000 tonnes of CO2 per year.
First Solar will also provide operations and maintenance services to Enbridge under a long-term contract. The power output of the 80 MW facility will be sold to the Ontario Power Authority pursuant to 20-year Power Purchase Agreements under the terms of the Ontario Government’s Renewable Energy Standard Offer Program.
Last month First Solar sold a 21-MW solar project in California to NRG Energy, Inc. (NYSE: NRG).
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