A merchant wind project in Texas has been acquired by an owner operator of renewable energy projects, its second such acquisition this year.
enXco, an EDF Energies Nouvelles company, and Element Power US, LLC said that enXco has closed on the purchase of the Bobcat Bluff Wind Project. The project, which spans approximately 14,000 contiguous acres, is located approximately 20 miles south of Wichita Falls in Archer County, Texas.
In the coming months, enXco intends to deploy up to 150 MW of GE turbines. Construction is expected begin this spring with operations to begin in December 2012, to take advantage of an expiring federal tax credit.
“This transaction provides enXco with an opportunity to enter the strong wind resource market of the Energy Reliability Council of Texas (ERCOT) while the federal Production Tax Credit (PTC) program is in effect. By working with Element Power, we can leverage our collective experience and resources to complete projects within the December 2012 timeframe,” said Tristan Grimbert, President & CEO of enXco. “Bobcat Bluff marks our second development acquisition within Texas in the first quarter of 2012. Both projects are scheduled for construction and completion this year.”
enXco doesn’t have a power-purchase agreement and plans to sell the output on the ERCOT spot market.
This is the second wind project acquired in Texas this year. enXco in January acquired from Cielo Wind Power the development assets for the Spinning Spur Wind Project.
The 161 MW Spinning Spur Wind Project spans 28,426 acres in Oldham County, Texas approximately 30 miles west of Amarillo. The project consists of 70 Siemens 2.3 MW turbines, will be constructed by Wanzek Construction Inc. with an anticipated start date of June 2012 and operations in December 2012. The electricity generated will be sold to Southwestern Public Service Company, a subsidiary of Xcel Energy, in a previously executed power purchase agreement.