Austin City Council Approves Third Wind Contract


The Austin City Council has approved Austin Energy's 25-year purchase power agreement (PPA) for 200 MW of wind power from the Penascal III project in Kenedy County, Texas.

Earlier this month, the city council approved agreements for two other Austin Energy PPAs for wind projects located near the Texas coast – a 200 MW project from Duke Energy Generation and a 91 MW project from MAP Royalty Inc.Â

Most of the output from the three new projects will occur during peak-demand times in the afternoon throughout the year as opposed to wind power from West Texas, which blows primarily in the evening hours in the spring and summer, according to Austin Energy.Â

The Penascal III project will be constructed by Iberdrola Renewables. Austin Energy will purchase the power produced at a fix cost per megawatt hour for $725 million over the 25-year period. The project, located near Sarita, Texas, will consist of 84 wind turbines and is expected to be complete by the end of 2012.

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