EDF Renewables North America and Enbridge Announce Commercial Operation of Fox Squirrel Phase 1
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Insights
The completion of Phase 1 of the Fox Squirrel Solar project by EDF Renewables North America and Enbridge Inc. is a significant development within the renewable energy sector. The operational status of this phase, contributing 150 MWac to the PJM grid, is a strategic advancement in the energy transition movement. This project's scale, with a total planned capacity of 749 MWdc/577 MWac, marks it as a substantial contributor to the North American renewable energy infrastructure.
For stakeholders, the immediate benefit lies in the generation of decarbonized electricity, which aligns with broader environmental goals and regulatory trends favoring sustainable energy sources. The secured 20-year power purchase agreements provide financial stability and predictability for both EDF Renewables and Enbridge. Additionally, the project's construction has created jobs, which positively impacts the local economy.
In the long-term, the project's success could pave the way for further renewable investments by Enbridge, which is known for its rigorous capital allocation process. The mention of the project being 'immediately accretive to DCF per share' suggests a positive impact on Enbridge's financial performance, which could influence investor sentiment and the stock's performance.
The Fox Squirrel Solar project exemplifies the economic transformation associated with the shift towards renewable energy sources. The project's ability to power approximately 118,000 average Ohio homes introduces a considerable shift in the state's energy mix, with potential ripple effects on regional energy markets. The environmental benefits, such as reduced greenhouse gas emissions and decreased reliance on fossil fuels, contribute to the broader societal goal of mitigating climate change.
From an economic perspective, the investment in renewable infrastructure like Fox Squirrel Solar may stimulate local economies through job creation during construction and ongoing maintenance phases. Furthermore, the project aligns with the investment grade counterparty's strategy, indicating robust financial backing and confidence in the project's viability. This could encourage additional capital inflows into the renewable sector, fostering further innovation and economies of scale.
The operationalization of Fox Squirrel Solar's first phase is a noteworthy event in the context of the renewable energy market's expansion. As the largest onshore renewable energy project developed by EDF Renewables in North America, it serves as a benchmark for project scale and execution. The pace at which the project has progressed, with the rapid installation of solar panels, reflects the growing efficiency and capabilities within the renewable sector.
Market implications include increased competition among renewable energy providers and potential downward pressure on energy prices due to the influx of solar-generated electricity. The project's progress will be closely monitored by competitors and investors alike, as it may influence market dynamics and set expectations for similar large-scale renewable endeavors. Additionally, the commitment to the subsequent phases of the project will be contingent on meeting certain conditions, which could include regulatory approvals, market demand and technological advancements, all of which are critical factors for market stakeholders to consider.
Fox Squirrel solar located in
Comprised of 1.4 million panels and 159 inverters in total, Fox Squirrel Solar represents the largest onshore renewable energy project developed and built by EDF Renewables North America. During peak construction of the first phase, 650 workers were onsite installing 10,000 panels per day. Enbridge invested in the first phase and plans to reach final investment decision on the following phases through 2024, assuming certain conditions are met.
Fox Squirrel 1 |
Fox Squirrel 2 |
Fox Squirrel 3 |
150 MWac /194 MWp |
250 MWac /325 MWp |
177 MWac /230 MWp |
Operational Dec 2023 |
Expected Operation Mid-2024 |
Expected Operation End of 2024 |
The project has secured 20-year power purchase agreements with a strong investment grade counterparty for the full generation capacity and is expected to generate enough electricity to power the equivalent of 118,000 average
"The development and operation of Phase
"We are pleased to bring into service the first phase of the Fox Squirrel solar project as part of our expanded strategic partnership with EDF Renewables,” said Matthew Akman, Executive Vice President Corporate Strategy and President, Power, Enbridge. “The development of this project will support local communities and deliver clean power for our customer. The project underscores our energy transition leadership and highlights our rigorous capital allocation process which targets projects that are immediately accretive to DCF per share and complementary to our growth outlook."
EDF Renewables, with its extensive experience and track record of success, is dedicated to providing solutions that help customers achieve their carbon-reduction goals. With 35 years of experience and 16 gigawatts of wind, solar, and storage projects developed, EDF Renewables is a leading provider of integrated energy solutions, ranging from grid-scale power to electric vehicle charging.
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About EDF Renewables North America
EDF Renewables North America is a market leading independent power producer and service provider with 35 years of expertise in renewable energy. The Company delivers grid-scale power: wind (onshore and offshore), solar photovoltaic, and storage projects; distribution-scale power: solar and storage; asset optimization: technical, operational, and commercial expertise to maximize performance of generating projects, and onsite solutions, through the Company’s PowerFlex subsidiary, offering a full suite of onsite energy solutions for commercial and industrial customers: solar, storage, EV charging, energy management systems, and microgrids. EDF Renewables’ North American portfolio consists of 16 GW of developed projects and 13 GW under service contracts. In
About Enbridge Inc.
At Enbridge, we safely connect millions of people to the energy they rely on every day, fueling quality of life through our North American natural gas, oil and renewable power networks and our growing European offshore wind portfolio. We're investing in modern energy delivery infrastructure to sustain access to secure, affordable energy and building on more than a century of operating conventional energy infrastructure and two decades of experience in renewable power. We're advancing new technologies including hydrogen, renewable natural gas, carbon capture and storage and are committed to achieving net zero greenhouse gas emissions by 2050. Headquartered in
Enbridge Forward-Looking Statement
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements in this news release include statements with respect to the Fox Squirrel solar project (the “Project”) and related matters, including the characteristics and benefits of the Project, anticipated investment decision and operation dates, and expected accretion of the Project.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of, demand for and prices of crude oil, natural gas, natural gas liquids (NGL), liquified natural gas (LNG) and renewable energy; anticipated utilization of our assets; exchange rates; inflation; interest rates; availability and price of labour and construction materials; the stability of our supply chain; operational reliability and performance; maintenance of support and regulatory approvals for our projects, including the Project; anticipated in-service dates; weather; announced and potential acquisition, disposition and other corporate transactions and projects and the timing and benefits thereof, including the Project; governmental legislation; litigation; credit ratings; hedging program; expected EBITDA and expected adjusted EBITDA; expected earnings/(loss) and adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected future cash flows; expected future distributable cash flow (DCF) and DCF per share; estimated future dividends; financial strength and flexibility; debt and equity market conditions; and general economic and competitive conditions. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL, LNG and renewable energy and the prices of these commodities are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for our services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which we operate and may impact levels of demand for our services and cost of inputs and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction, including estimated in-service dates and the realization of anticipated benefits, include the following: the impact of litigation and government, regulatory and stakeholder actions and approvals on construction and in-service schedules; the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; technology-related matters; the impact of weather; and expectations about our partners’ ability to complete and finance proposed projects.
Enbridge’s forward-looking statements are subject to risks and uncertainties pertaining to the successful execution of our strategic priorities; operating performance; regulatory parameters; litigation; acquisitions and dispositions and other transactions, and the realization of anticipated benefits therefrom; project approval and support, including with respect to the Project; renewals of rights-of-way; weather; economic and competitive conditions; global geopolitical conditions; political decisions; public opinion; dividend policy; changes in tax laws and tax rates; exchange rates; interest rates; inflation; commodity prices; and supply of and demand for commodities, including but not limited to those risks and uncertainties discussed in this news release and in Enbridge’s other filings with Canadian and
View source version on businesswire.com: https://www.businesswire.com/news/home/20240110431197/en/
EDF Renewables
Sandi Briner
mediarelations@edf-re.com
Enbridge
Mandy Dinning
Toll Free: (888) 992-0997
media@enbridge.com
Source: EDF Renewables North America
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