Canadian energy outfit Capital Power has finalised a contract for the output from the 178MW Bloom project in Kansas, paving the way for construction to begin.
Capital will operate the wind farm under a 10-year fixed price contract with Allianz Risk Transfer, a subsidiary of insurance and asset management group Allianz SE, covering 100% of the project's output.
Under the contract, which was executed on 21 April 2016, Capital will swap the market revenue of the project's generation for a fixed annual payment for a 10-year term.
The agreement will secure long-term predictable revenues and mitigate generation volume uncertainty related to wind resources, allowing Bloom Wind to secure renewable energy tax equity financing, said Capital.
The developer plans to start construction this summer and expects to begin commercial operation in the third quarter of 2017.
The $272m wind farm will consist of 54 3.3MW turbines. It is located on 15,000 acres of privately owned land 20 miles south of Dodge City in Ford and Clark Counties, where wind speed averages more than nine metres per second.
Capital bought the project from Norvento USA, a subsidiary of Spain’s Norvento Enerxia, in 2014.
Image: Capital Power