NJR Clean Energy Ventures (NJRCEV), the unregulated distributed power subsidiary of New Jersey Resources (NJR), said Feb. 5 that it has agreed to acquire its second onshore wind project.
The Carroll Area wind farm will be located on 1,100 acres of agricultural land in Carroll County, Iowa, about 65 miles northwest of Des Moines. NJRCEV will invest about $42m to construct, own and operate the wind farm, which will have a total capacity of 20 MW.
“With the Carroll Area wind farm project, NJR Clean Energy Ventures continues to successfully execute its distributed power strategic plan,” said Laurence Downes, chairman and CEO of New Jersey Resources. “As renewable energy becomes an increasingly larger and important part of our nation’s energy future, we will continue to identify investment opportunities that strengthen our distributed power portfolio, reduce our reliance on investment tax credits from solar investments, benefit our company and shareowners and are consistent with our core values of quality service and environmental stewardship.”
NJRCEV agreed to acquire the shovel-ready Carroll Area wind farm project from OwnEnergy Inc., a developer of midsize and community wind projects. It will be the second wind farm project purchased from OwnEnergy. The first was the Montana-based Two Dot wind farm in 2013. NJRCEV maintains an approximate 19% ownership position in OwnEnergy and holds an option to purchase projects that fit its investment profile.
The energy produced at the Carroll Area wind farm, as well as the renewable attributes, will be sold through a 25-year power purchase agreement with MidAmerican Energy. NJRCEV expects the wind farm will qualify for federal production tax credits (PTCs), which are based on kilowatt-hour output. All PTCs generated by the Carroll Area wind farm will be retained by NJR.
NJRCEV will engage Mortenson Construction for the engineering, procurement and construction of the project. NJRCEV expects the wind farm will be operational by spring 2015.
NJRCEV invests in, owns and operates distributed power projects that generate clean energy and provide low-carbon energy solutions. To date, NJRCEV’s approach has focused on commercial and residential solar project development in New Jersey and expanded to include onshore wind projects in the Midwestern United States.