A renewable power generation subsidiary of Algonquin Power & Utilities has signed a wind power project acquisition agreement with Gamesa Corporación Tecnológica. Under the terms of the agreement, Algonquin Power will purchase four wind power projects with a total combined capacity of 480 MW from Gamesa for about US$888 million.
The 480 MW wind portfolio will be purchased through American Wind Portfolio Holdings (AWPH), a joint venture between Algonquin Power, Gamesa and tax equity investors.
The four projects are 200 MW Minonk project in Illinois; 150 MW Senate wind energy project in Texas; 80 MW Pocahontas Prairie wind farm in Iowa; and 50 MW Sandy Ridge wind power generation facility in Pennsylvania. The four facilities are anticipated to produce a total of 1,644 GWh of energy per year. The projects use 240 units of Gamesa’s G9X-2.0 MW wind turbines, which are suitable for the wind regimes and have a proven global record. Each project has signed a 20-year agreement with Gamesa to offer operations, maintenance and warranty services for the turbines and balance of plant (BoP) facilities. The Sandy Ridge and Pocahontas Prairie projects have achieved their commercial operation dates (COD) in February 2012, while the Minonk and Senate wind projects are under construction with COD expected in the last quarter of 2012.
In addition to the acquisition agreement, Algonquin Power and Gamesa have signed a joint development agreement. The agreement will enable both the companies to find additional wind energy development opportunities in Canada and the U.S. As per the agreement, Gamesa will assist to expand Algonquin Power’s 325 MW portfolio of contracted development projects.