ALLETE Adds to Renewable Assets - Analyst Blog
December 20 2012 - 11:35AM
Zacks
ALLETE, Inc.’s (ALE) unit Minnesota Power has
completed operational and commissioning process of the Bison 2 and
3 projects of its Bison Wind Energy Center. This new renewable
installation has a total capacity of 210-megawatt (“MW”). These
plants are located near New Salem, North Dakota.
These projects include Siemens AG (SI)-made 70
wind turbine generators, which are installed on the top of the
265-foot towers based in south-central North Dakota. Each of the
turbines has generation-capability of 3MW of electricity by way of
direct-drive.
In August 2005, the U.S Environmental Protection Agency (“EPA”)
circulated a regulation that each of the federal agencies will
consume renewable energy in amounts of not less than 7.5% in 2013
and afterwards.
To meet the environmental legislations, most of the utility
providers including Minnesota Power invest substantial amounts for
developing and upgrading their renewable emission-free utility
assets.
Minnesota Power has started its Bison project, a renewable energy
venture, in 2010. This project is connected with Minnesota by a
465-mile direct current (“DC”) transmission line. Prior to Bison 2
and 3 projects, the company has completed its 82MW Bison 1 project
with 15 wind turbines in February 2012.
Globally, demand for renewable energy is rising primarily due to
its clean nature and growing awareness regarding its benefits. This
factor influences the utility providers to shift their mode of
power generation to wind, solar and water from coal, oil and
natural gas.
With the installation of Bison 2 and 3 projects, share of renewable
generation in ALLETE’s total electricity portfolio will increase to
20%. This will subsequently enable the company to meet the state’s
renewable energy goals.
The production of electricity from renewable sources is costlier
than the traditional resources. The renewable energy production tax
credit (“PTC”) on wind generation will help ALLETE to recover a
portion of its production costs. However, this government incentive
is going to expire by the end of this year.
Minnesota-based ALLETE, Inc. is a multi-service provider and has
operations in Florida, North Dakota and Wisconsin. It has a wide
array of businesses; starting from supply of electricity and water
utility to automobile auction. With a market capitalization of
$1.55 billion, the company has 1,315 full-time employees. ALLETE,
Inc. currently has a short-term Zacks #3 Rank (Hold rating).
ALLETE INC (ALE): Free Stock Analysis Report
SIEMENS AG-ADR (SI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Allete (NYSE:ALE)
Historical Stock Chart
From Sep 2024 to Oct 2024
Allete (NYSE:ALE)
Historical Stock Chart
From Oct 2023 to Oct 2024