EDF Renewable Energy has entered into a Membership Interest Purchase Agreement with Lincoln Renewable Energy to acquire the first phase of the up to 500-MW Hereford Wind Project in Texas, subject to certain conditions precedent, said EDF on July 22.
EDF also has an option to acquire the second phase of the project. Construction is expected to commence on the 200-MW first phase later this year in order to qualify it for the federal Production Tax Credit (PTC).
The project, covering around 15,000 acres in Deaf Smith County southeast of the town of Hereford, will take advantage of the CREZ (Competitive Renewable Energy Zone) transmission lines connecting the wind capacity of the Texas Panhandle to high electricity demand areas in the state. EDF said it is in advanced negotiations to secure a long-term, fixed-price hedge agreement for the expected energy production of the project’s first phase.
“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 Ryan Pfaff, Executive Vice President of EDF Renewable Energy.
He added: “We applaud the Public Utility Commission of Texas for their vision in implementing the CREZ transmission project, which will provide access-to-market for low-cost, clean renewable energy, and in turn, spur economic development at the local level.”
Declan Flanagan, CEO of Lincoln Renewable Energy, said: “We are delighted to be working with a partner of the caliber of EDF Renewable Energy on the Hereford wind project, and look forward to the project quickly moving into construction.”
The Hereford project represents EDF Renewable Energy’s confidence in wind power’s growth and construction in the state of Texas. Following on from the Spinning Spur (161 MW) and Bobcat Bluff (150 MW) projects commissioned in December 2012, and the Spinning Spur II (161 MW) project presently now construction in the Texas Panhandle, EDF Renewable Energy will soon expand the Group’s installed wind capacity in the state to 972 MW.
EDF Renewable Energy is a leading U.S. independent power producer with more than 25 years of expertise in the renewable industry, covering all range of services from project development, management to operations and maintenance. EDF Renewable Energy’s portfolio consists of 4 GW of developed projects with 1.9 GW of installed capacity. It is the U.S. subsidiary of France’s EDF Energies Nouvelles. EDF Energies Nouvelles is the renewable energy arm of the EDF group, the leading electricity company in the world.
Lincoln Renewable Energy develops utility-scale solar and wind power projects from greenfield concept to commercial operation.