April 7, 2008

Power Generation

Enmax unveils proposed site of $1-billion natural-gas-fired generating station

Richard Gilbert

staff writer

Enmax unveiled the proposed site for a $1-billion-plus natural gas-fired power generation station that will provide electricity for Calgary and stabilize the southern Alberta power transmission grid

The 1,000 MW Shepard Energy Centre will be located on the east side of Calgary in an industrially–designated area and is directly adjacent to existing 240 kV transmission lines.

The facility is scheduled to be generating electricity in late 2011 and will meet about two thirds of Calgary’s energy requirements.

“As Calgary’s electricity demand continues to grow, we need to build cleaner generation facilities that are closer to the city, that have less impact on the environment than current coal-fired plants, are not vulnerable to long distance transmission lines that are increasingly difficult to build and are vulnerable to weather disruption at the times when power is most needed,” said Gary Holden, Enmax Energy CEO.

The Shepard Energy Centre is expected to become the template for future plants in Alberta because it is cleaner than coal and offers a solution to several existing Alberta system issues.

“It stabilizes the southern Alberta power transmission grid,” Holden said.

“Power generation facilities that can quickly ramp up to meet customer demand will aid in the development of additional wind farms that are challenged by intermittent production.”

The new facility is also expected to open the door for greater export capacity and more wind generation overall.

“By locating the facility closer to the demand for electricity, the need to transport electricity over long distances is reduced, and results in a dramatic impact in reducing electricity transmission line losses,” he said.

In related news, the company announced in February that it acquired Cordero Energy Inc for about $218 million.

“This secures long-term natural gas supply for the Calgary Energy Centre, with which we entered into a 20-year tolling agreement, effective last year,” Holden said. “This will help supply competitively priced natural gas and electricity.”

On March 26, Enmax announced that it has acquired Kettles Hill Wind Energy Inc., the owner and operator of the Kettles Hill Windpower Facility, for $163 million.

The Kettles Hill Windpower Facility is located near Pincher Creek and is comprised of 35 Vestas turbines with a current capacity of 63MW, which is enough renewable energy for about 27,000 homes.

The wind farm has potential for a further 77 MW and the regulatory process for expansion has been initiated.

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