Google and Citi say they are providing financial backing for portions of the 1.55 GW Alta Wind Energy Center, which developer Terra-Gen Power is building in Tehachapi, Calif.
Five segments of the Alta project, totaling 720 MW, are operational today. Citi has underwritten equity financing for the second, third, fourth and fifth stages of the project, totaling 570 MW. Also, Citi and Google have each invested $55 million in the fourth stage of the project, which totals 102 MW.
The financing is structured as a leveraged lease, whereby the investors have committed to purchase the projects at the start of commercial operations and lease them back to Terra-Gen. Terra-Gen will continue to manage and operate the wind projects.
All of the capacity from the Alta project is being sold to Southern California Edison under a long-term power purchase agreement.
