Kansas-based electric utility Westar Energy is offering investors $350 million in green bonds, which will be used to invest in wind energy projects – particularly, the construction of the Western Plains Wind Farm.
Westar explains that green bonds tie the proceeds of a bond issue to environmentally friendly projects. During the past few years, the utility says, investors’ interest in green bonds has grown as a way to channel private-sector financing toward climate-friendly initiatives.
As previously announced, Westar and Infinity Wind Power will construct the Western Plains Wind Farm, a 280 MW project in Ford County, Kan.
The utility says the wind farm, which should be operational by early 2017, will bring Westar’s renewable energy commitment to more than 1.7 GW.
“Green bonds provide another opportunity for investment in renewable energy in Kansas,” says Gov. Sam Brownback. “These bonds support eligible green projects in the state and support corporate sustainability goals.”
Tony Somma, Westar Energy’s chief financial officer, adds, “As we continue to diversify the way we produce energy, it makes sense for us to offer a green bond so investors can diversify their portfolios.”