DTE Energy has won a $485 million contract to purchase 120 MW energy from a wind farm located in Tuscola, Bay and Saginaw counties.
The agreement with Tuscola Bay Wind, which is a unit of NextEra Energy Resources, has been approved by the Michigan Public Service Commission (MPSC). As per the terms of the agreement, DTE Energy will buy all the energy generated by the wind farm spanning an area of 9,000 acres. This energy can power over 30,000 homes. The wind farm is slated to be functional by late 2012.
NextEra Energy Resources will own the wind farm and the company has about 115 facilities for renewable energy. It is also the country’s largest developer of wind energy. The project is currently in the development phase, and construction is likely to start in 2012. It will take six to nine months for the completion of the project. NextEra Energy Resources plans to recruit 250 to 275 people for the construction work and also 10 to 12 employees for permanent positions.
The $250 million worth wind farm is expected to generate $50 million in about 30 years in lease payments given to landowners, $19 million in the form of property taxes and $21 million in the form of salary and benefits. DTE Energy will considerably expand the renewable energy resources of the company with this 20-year power purchase contract.
DTE Energy intends to add nearly 1,000 MW from renewable energy sources by the year 2015 and to obtain most of its renewable energy from wind resources. It has a pilot solar energy project, which is capable of generating about 20 MW. DTE Energy has also plans to construct three wind farms in Sanilac and Huron counties in 2012. It has chosen General Electric to deploy 70 wind turbines, with a total capacity of 110 MW, at the wind farms.