Wind developer OwnEnergy Inc. has signed a 20-year purchase power agreement (PPA) with the Kansas City Board of Public Utilities (BPU) for 25 MW generated by the 50 MW Alexander wind farm, to be located south of Alexander, Kan.
The developer expects the energy to be available to the BPU in October 2015. Joe Jarsulic, director of electric supply planning for the BPU, estimates that this agreement will save ratepayers an average of $900,000 annually over the 20-year term.
OwnEnergy says this PPA will help the BPU have wind energy equal to 10% of its peak demand and 22% of its peak in renewables when the wind farm goes online. This exceeds Kansas' renewable portfolio standard, which currently requires electric utilities to have at least 10% of their peak demand from renewable resources through 2015, 15% in 2016 and 20% beginning in 2020.
OwnEnergy also notes that the wind farm is being developed as a result of a partnership with the Bannister Family, which has been farming and ranching in Rush County, Kan., for over 100 years. Approximately 17 landowners are involved in the project, and OwnEnergy expects the wind farm will create 150 full-time equivalent jobs during construction, as well as five permanent on-site jobs during operation.
In addition, the developer says Rush County will receive more than $1.6 million in direct payments, and those local farmers and ranchers who lease land to the project can expect over $7.3 million over the life of the wind farm.