| Project Detail |
The Nipigon Project is a 40 MW gas-fired enhanced combined-cycle generating facility located in Nipigon, Ontario adjacent to the TransCanada Mainline. Nipigon utilizes a process called enhanced combined-cycle generation to produce electricity from a traditional gas turbine generator and steam turbine generator set, and from steam produced from the hot exhaust gases (“waste heat”) from the two nearby TransCanada Mainline gas transmission compressor station turbines, when such waste heat is produced. Nipigon commenced commercial operation in May 1992.
In late 2016, in response to oversupply conditions in the Province, Atlantic Power reached agreement with the Ontario Electricity Financial Corporation (OEFC) to suspend or terminate the PPAs for three of its Ontario projects and replace them with Enhanced Dispatch Contracts with the Ontario Independent Electricity System Operator (IESO). The Enhanced Dispatch Contracts have no delivery obligations and the Company does not expect to operate the facilities while the Enhanced Dispatch Contracts are in effect.
In the case of Nipigon, the Enhanced Dispatch Contract runs through October 2018. In December 2017, Nipigon reached agreement on a Long-Term Enhanced Dispatch Contract (LTEDC) that will become effective in November 2018 and expire in December 2022. Under this arrangement, the project will return to service in single-cycle mode and will operate on a flexible basis. The LTEDC provides for monthly capacity-type payments. The project will earn energy revenues when it operates, although the capacity factor is expected to be low.
Atlantic Power indirectly owns 100% of Nipigon, which was acquired as part of the Capital Power Income LP acquisition in November 2011. Atlantic Power also operates and manages the Project.
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