Coquitlam, B.C.-based Western Wind Energy Corp. has announced that it is engaged in negotiations reviewing offers and is in discussions with major U.S. institutions regarding self-financing initiatives whereby its 120 MW Windstar Project will produce $1.7 billion in revenue over 30 years.
Although Western Wind was offered $228 million for all development rights of its 120 MW Windstar Project, including royalty payments pursuant to a land lease over a 30-year period, the company believes that, given the market for renewable energy, developing its own projects will provide a greater return.
The dynamics of the project economics call for a direct project cost of between $2.3 million and $2.5 million per MW with a further project developer profit payable to Western Wind for up to $1 million per MW or up to $170 million of net present value potential profit payable to Western Wind for Windstar and the company's Mesa Wind Power project.
In addition, Western Wind has further access to 65 site locations in California for wind energy generation.
SOURCE: Western Wind Energy Corp.