EDF Renewable Energy has entered into a membership interest purchase agreement with Lincoln Renewable Energy to acquire the 200 MW first phase of the up to 500 MW Hereford Wind Project in Texas.
EDF says the purchase agreement is subject to certain conditions precedent, and the company has an option to acquire the second phase of the wind farm. Construction of project's first phase is expected to commence later this year in order to qualify it for the production tax credit, the company notes.
The project, encompassing approximately 15,000 acres in Deaf Smith County southeast of the town of Hereford, will also take advantage of the Competitive Renewable Energy Zone (CREZ) transmission lines connecting the wind generating capacity of the Texas Panhandle to high electricity demand areas in the state.
EDF Renewable Energy adds that it is in advanced negotiations to secure a long-term, fixed-price hedge agreement for the expected energy production of the first phase of the project.
‘The production tax credit extension in early 2013, along with the CREZ transmission build-out, creates a compelling opportunity for EDF Renewable Energy to strengthen our presence in the wind-rich Texas Panhandle,’ says Ryan Pfaff, executive vice president of EDF Renewable Energy.