EDF Renewable Energy, a French energy firm, announced on Nov. 4 that EDF will buy the Longhorn Wind Project from Renewable Energy Systems Americas Inc. Longhorn Wind Project is located 60 miles northeast of Lubbock, Texas, and encompasses approximately 14,000 acres in Floyd and Briscoe Counties.
The Texas Senate Bill 20 (2005) established Competitive Renewable Energy Zones (CREZ). Only five designated areas in the Panhandle are identified as CREZ, which allows for electrical transmission lines to deliver wind generated energy to other cities in Texas, such as Dallas, Austin, San Antonio and Houston.
Although the cost of the Longhorn Wind Project was not disclosed, WTAMU Alternative Energy Institute estimates the cost to roughly be $2 million per megawatt of capacity. According to the Federal Energy Information Administration, one megawatt is capable of powering approximately 350 houses.
According to Ken Starcher, associate director of the Alternative Energy Institute, wind farms output of capacity is much less than rated capacity.
“On average year-round, the numbers we’ve seen for wind farms, like the ones in Oldham County, is 49 to 50 percent of the nameplate rating,” said Starcher. “The ballpark for the industry number is 25 to 30 percent.”
EDF has also secured a long-term fixed price hedge agreement for the estimated energy output of the Longhorn Project. By locking in a fixed price, the hedge agreement will help reduce the risk of rapid price fluctuations. This will eliminate volatility in revenue due to price swings.
The agreement also states that RES Americas will construct the project, under the balance-of-plant construction contract. RES Americas will be responsible for the cost of all infrastructure and facilities of the farm, with the only exception being the turbine and turbine components.
“We are pleased to be working with EDF Renewable Energy to bring additional wind energy to the Texas grid,” said Tom Hiester, Senior Vice President of Development with RES Americas. “Longhorn is another example of significant investment occurring because of the Production Tax Credit for wind energy, and it speaks to the criticality of maintaining this important tax incentive.”
EDF will begin construction of the 200-megawatt project later this year. In order to qualify for the Production Tax Credit, construction of Longhorn will have to begin before Dec. 31, 2013.
