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The AES Corp., an Arlington,Va.-headquartered company that generates and distributes power in 26 countries, has begun construction of a 233 MW wind generation project near Abilene, Texas. The company signed a 10-year power purchase agreement (PPA) to sell all of the electricity the project produces at fixed prices to Direct Energy, one of Texas' energy retailers.

The project, Buffalo Gap 2, is an expansion of the company's 121 MW Buffalo Gap wind farm that began operations near Abilene earlier this year. Once completed, the two projects will have the capacity to generate enough energy to power approximately 100,000 homes in Texas, the company says.

"Signing a second PPA with Direct Energy, the counter party for the first phase of AES' Buffalo Gap project, furthers our partnership with one of the largest purchasers of green electricity in Texas," says Ned Hall, AES' vice president of wind generation.

According to AES, commercial operation is expected in mid-2007.

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