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Capital Power pushes back Genesee 4 and 5 power plant over coal policy uncertainty

CALGARY – Capital Power has once again delayed a final go-ahead on its new natural gas-fired power plant because of continued uncertainty about Alberta’s coal phase-out and power market.

The proposed $1.4-billion Genesee 4 and 5 power plant, half-owned by utility Enmax Corp., has had all its regulatory approvals in place since early 2015.

The plans called to the plant to be built within the boundaries of the existing Genesee Generating Station, located about 50 kilometres southwest of Edmonton in Leduc County.

Edmonton-based Capital Power said it is now targeting the first quarter of 2017 to approve the project, after a previous delay in April that it said brought modestly higher cost and risk.

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The company said the Genesee project is contingent on fair compensation for the early closure of its coal facilities, which it expects to get clarity on by the end of the year, as well as favourable conditions in the Alberta electricity market.

Last week Premier Rachel Notley confirmed in her state of the province address that the government will provide coal emitters with some of the capital needed to close their plants, and to invest in cleaner power production.

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