EDF Renewable Energy has reached an agreement with Renewable Energy Systems Americas Inc. (RES Americas) to acquire the 200 MW Longhorn Wind Project in Texas. The companies expect construction to commence later this year in order to qualify the project for the production tax credit (PTC).
‘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,’ comments Tom Hiester, senior vice president of development at RES Americas. Under a balance-of-plant contract, RES will construct the wind farm.
The project encompasses approximately 14,000 acres in Floyd and Briscoe counties and will take advantage of the Competitive Renewable Energy Zone transmission lines, which are designed to transfer wind generating capacity to high-demand areas in the state.
EDF Renewable Energy has also secured a long-term, fixed-price hedge agreement for the expected energy production of the project.
‘Longhorn represents our third wind project acquisition in the Texas Panhandle this year and brings EDF Renewable Energy's near-term capacity under either late-stage development or construction in the area to 561 MW, including the previously announced Hereford and Spinning Spur II transactions,’ notes Ryan Pfaff, executive vice president of EDF Renewable Energy.