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Topics of Importance Renewable & Alternative Energy

Management Approach

Our Green Power Portfolio

Since our initial investment in a wind farm in 2002, we, through our Green Power, Transmission and Emerging Technology group (GPT&ET), have invested nearly $5 billion in wind, solar, geothermal, hydropower and waste heat recovery projects. Together these projects, including those in operation, planned or under construction, represent nearly 2,800 MW (gross) of green power capacity. This is enough to meet the electricity needs of more than one million homes. Today Enbridge is one of the largest renewable energy companies in Canada, and our portfolio of renewable energy projects is diversified and growing.

Summary of Enbridge’s Renewable and Alternative Energy Investments

PROJECT LOCATION COMMERCIAL OPERATION DATE Gross Generating Capacity (gross MW) Ownership by Enbridge and Subsidiaries at Dec 31, 2015 (% interest) Net Generating Capacity by Enbridge and Subsidiaries (net MW) Net Generating Capacity1,2 by Enbridge at Dec 31, 2015 (net MW)
WIND
1. SunBridge Gull Lake, SK 2002 11 50% 6 5
2. Magrath Magrath, AB 2004 30 33% 10 9
3. Chin Chute Taber, AB 2006 30 33% 10 9
4. Enbridge Ontario Wind Farm 3 Kincardine, ON 2009 190 100% 190 169
5. Talbot Ridgetown, ON 2010 99 100% 99 88
6. Greenwich Dorion, ON 2011 99 100% 99 88
7. Cedar Point Limon, CO 2011 250 100% 250 250
8. Saint-Robert-Bellarmin Saint-Robert-Bellarmin, QC 2012 82 50% 41 37
9. Magic Valley Willacy County, TX 2012 202 80% 161 161
10. Wildcat Madison County, IN 2012 200 80% 160 160
11. Lac Alfred Amqui, QC 2013 308 67.5% 208 185
12. Massif du Sud Chaudière-Appalache Region, QC 2013 154 80% 123 110
13. Blackspring Ridge Vulcan County, AB 2014 300 50% 150 134
14. Keechi Jack County, TX 2015 110 100% 110 110
15. New Creek Grant County, WV 2016 103 100% 103 103
16. Rampion Offshore Sussex Coast, UK 2018 400 24.9% 100 100
SOLAR
1. Sarnia Solar Sarnia, ON 2009-2010 80 100% 80 71
2. Tilbury Solar Tilbury, ON 2010 5 100% 5 4
3. Amherstburg II Solar Amherstburg, ON 2011 15 100% 15 13
4. Silver State North Solar Primm, NV 2012 50 100% 50 50
GEOTHERMAL
1. Neal Hot Springs Malheur County, OR 2012 23 40% 9 9
HYDROPOWER
1. Wasdell Falls Washago, ON 2015 2 50% 1 1
ALTERNATIVE
1. NRGreen Power Saskatchewan & Alberta 2008-2014 34 50% 17 15
TOTAL 2,777 1,997 1,881

1 We report net generation to align with our financial reporting, and adjust for our company’s investment in the Enbridge Income Fund. Net MWs reflect Enbridge’s net interest in projects through our 89.2 percent interest in the Enbridge Income Fund.

2 On September 1, Enbridge’s interests in the Lac Alfred, Massif du Sud, Saint-Robert-Bellarmin and Blackspring Ridge wind farms were transferred from Enbridge Inc. to the Enbridge Income Fund.

3 The Cruickshank and Underwood wind farms combine to form the Enbridge Ontario Wind Farm.

Wind Energy

In over a decade, we have invested in more than 2,500 MW (gross) of wind power capacity, with the potential to serve more than 950,000 homes. We have interests in 16 wind farms in operation, planned or under construction. In Canada, they are located in Alberta, Saskatchewan, Ontario and Quebec; in the U.S., they are in Colorado, Indiana, Texas and West Virginia.

We sell most of the electricity that our wind farms generate to customers such as the following, under long-term power purchase agreements (PPAs) or price swap arrangements:

These customers generally retain the renewable energy credits (RECs) that our wind projects generate.

In 2015, we entered the global offshore wind market with our acquisition of a 24.9 percent stake in the Rampion Offshore Wind Project off the UK Sussex coast.

Solar Energy

Our four solar energy facilities (three in Ontario and one in Nevada) have a total gross generation capacity of 150 MW. Our 80-MW Sarnia Solar facility near Lake Huron in Sarnia, Ontario, is one of the largest photovoltaic facilities in Canada. We sell the electricity it generates to IESO under long-term PPAs.

Geothermal Energy

We own a 40 percent interest in Neal Hot Springs, Oregon’s first commercial geothermal power plant. The 23-MW facility delivers electricity to the Idaho Power grid under a long-term PPA.

Waste Heat Recovery

We have a 50 percent interest in NRGreen Power, which operates five waste heat recovery facilities along the Alliance Pipeline in Saskatchewan and Alberta. Together these projects have a total gross generation capacity of 34 MW. The power generated from the four NRGreen facilities in Saskatchewan is sold under long-term PPAs to SaskPower, while the energy produced by the Whitecourt Recovered Energy Facility in Whitecourt, Alberta, is sold into the Alberta power market on a spot basis.

Hydropower

We have a 50 percent interest in the Wasdell Falls Hydro Power Project, located near Washago on Ontario’s Severn River. Developed with the support of Natural Resources Canada, the project has involved retrofitting an existing dam with new very low head-type turbines that minimize infrastructure costs and reduce environmental impacts.  The turbines are the first of their kind in Canada and have been developed especially for small waterfalls.  The 2-MW project began commercial operation in December 2015.

Environmental and Social Benefits of our Green Power Projects

We are contributing to a global shift toward a lower-impact energy production mix by investing in green power projects that complement our core business while limiting GHG emissions. Each of our renewable and alternative energy projects provides environmental benefits:

  • Our wind farms provide a source of clean energy, helping to diminish acid rain, smog and the GHGs that contribute to climate change.
  • Our solar facilities generate electricity with no emissions, no waste production and no water use.
  • Our geothermal facility is a zero-emission project that uses heat from the Earth to produce power.
  • Our waste recovery projects generate emissions-free electricity by harnessing the exhaust heat produced by gas turbines at compressor stations.

By investing in green power projects, we not only contribute to clean energy, we help to grow the economy through employment, property taxes and lease payments to landowners. We also give back to local organizations through our community investments, which support programs and agencies that improve quality of life for the communities where we operate.

Our approach to green power development has earned industry recognition. In 2015, the Canadian Wind Energy Association (CanWEA) presented our Blackspring Ridge wind farm in Alberta with a Project-of-the-Year Award for demonstrating exceptional commitment to responsible and sustainable development through initial development, community engagement, permitting and construction. Blackspring Ridge is the second facility in our wind power portfolio to receive this award, as CanWEA presented it to the Lac Alfred wind farm in Quebec in 2013.

Our Investment Approach to Green Power

Our strategy to grow our renewable and alternative energy business is consistent with our objectives to provide reliable energy sources and to develop new platforms that extend and diversify earnings growth. Our green power investments align with our existing business model that focuses on generating solid returns with stable and strong cash flows.

In most cases, our renewable and alternative energy projects are underpinned by attractive long-term PPAs and price swap arrangements that will deliver stable cash flows and attractive returns similar to those realized by our liquids and gas transportation businesses. We sell all of the electricity generated by our projects to large customers or independent system operators. Many of our customers that have purchased power from our projects acquire the associated environmental benefits, including GHG offsets. In addition, renewable energy credits (RECs) generated by some of our wind projects are sold through long-term price-swap contracts.

We are continuing to expand our interests in green power, with the goal to double our renewable generation capacity by 2019. To grow our business, we are targeting projects that:

  • provide attractive returns to investors and significant environmental benefits,
  • provide opportunities for long-term pricing or price swap arrangements,
  • offer a high-quality energy resource and access to transmission,
  • demonstrate high standards of safety and community engagement during construction and operation,
  • provide growth or expansion opportunities,
  • incorporate the latest proven technologies, and
  • enable us to build collaborative relationships with proven developers and suppliers.

To date, we have focused on taking investment stakes in late-stage green power projects built and operated mostly by third parties. Our goal is to move toward a more integrated model, allowing us to take on a greater role in key decisions including offtake and REC sales agreements. As we continue to grow our well-established renewable energy business and build upon the project execution expertise that we are known for, participating in earlier stages of development allows us to become even more competitive in the renewable energy market. To put this strategy into action, in late 2015 we acquired the 103-MW New Creek Wind Project, an early stage development project.  As we continue to integrate our renewable energy business, we will look to taking full operational responsibility of our operating renewable facilities, as their current contracts with key service providers expire and the associated economics make sense.