EDF buys 200MW Texas wind farm
Deal for Hereford 1 project includes option for 300MW phase 2
EDF Renewable Energy has agreed to buy the 200MW Hereford phase 1 wind project in Texas from Chicago-based developer Lincoln Renewable Energy.
The deal includes an option to acquire the 300MW second phase. Construction of phase 1 is expected to start before year-end to qualify for the production tax credit.
EDF is in advanced negotiations to secure a long-term, fixed-price hedge agreement for the expected energy production of the first phase of the wind farm.
The project, encompassing about 15,000 acres in Deaf Smith County southeast of the town of Hereford, will interconnect to Competitive Renewable Energy Zone (CREZ) transmission lines linking the wind generating capacity of the Texas Panhandle to high electricity demand areas in the state.
“The Production Tax Credit extension in early 2013, along with the CREZ transmission build-out, creates a compelling opportunity for EDF Renewable Energy to strengthen our presence in the wind-rich Texas Panhandle,” said EDF EVP Ryan Pfaff.
Morgan Stanley acted as advisor to Lincoln Renewable Energy on the transaction, which is subject to certain conditions precedent.
Following on from the 161MW Spinning Spur and 150MW Bobcat Bluff projects commissioned in December 2012, and the 161MW Spinning Spur 2 project under construction in the Texas Panhandle, EDF will soon expand its installed wind capacity in the state to 972MW.
Image: EDF's 160MW Spinning Spur 1 wind farm in Texas (Business Wire)