Wind projects change hands last week

13 January 2014 by Carl Levesque Carl Levesque

Two weeks ago we highlighted the not-too-surprising trend of red-hot activity in the world of project construction starts. Last week proved busy as well, but in a different arena: projects changing hands, allowing companies to access resources and do what they love to do—that is, grow their businesses and develop more projects. The active Player of the Week: EDF Renewable Energy, which is involved in three of the four transactions highlighted below:



Photo credit: ACrowephotography

Monday: Enbridge invests in RES project. The week began with the announcement that Enbridge Inc., has entered into an agreement with Renewable Energy Systems Americas Inc. (RES Americas) for Enbridge to invest approximately $200 million into the construction of the 110-MW Keechi Wind Project, located in Jack County, Texas.

Construction for Keechi Wind began in December and the project is expected to reach commissioning in the first quarter of 2015. Upon attaining commercial operation, MetLife, Inc., will provide tax equity financing for the project.

The buyer of the power? It’s not even a utility. Try Microsoft Corp., under a 20-year contract.

Tuesday: Marubeni acquires majority stake in EDF’s Shiloh 4. EDF began the week on the sales side of the equation. The developer-owner joined Marubeni Corp. in announcing on Tuesday that Marubeni has acquired a 90 percent stake in the 102.5-MW Shiloh 4 project in Solano County, Calif. That project has been online since late 2012 and sends its electrons to Pacific Gas & Electric under a 25-year contract with that utility. EDF will keep a 10-percent stake in the project.

Wednesday: EDF buys Cielo Texas project. Having unloaded a sizable chunk of its completed and operational Shiloh 4, EDF turned to projects it can complete. The very next day the company announced the acquisition of the 194-MW Spinning Spur 3 Wind Project from Cielo Wind Power LP (Cielo). That project, which already has a power purchase agreement secured with Georgetown Utility Systems and Garland Power & Light, is slated to enter commercial operation by the end of 2015.

“We are pleased to add Spinning Spur 3 to our growing Texas wind portfolio, which we expect to exceed 1 GW of installed capacity by the end of 2015,” said Executive Vice President Ryan Pfaff.

Thursday: New Mexico acquisition. Then on Thursday, EDF activity headed  back west, this time to New Mexico. The company announced the acquisition of Roosevelt Wind Project, LLC, from Infinity Wind Power. The up-to 300 MW project, which will be EDF’s first in New Mexico, is expected to achieve commercial operation in December 2015.

It, too, comes with a PPA. Southwestern Public Service Co., a subsidiary of Xcel Energy, will purchase the electricity generated by the 250-MW first phase of the project under a 20-year, fixed-price power purchase agreement.