San Diego Gas & Electric (SDG&E) has entered into a 20-year contract for up to 156 MW of renewable power supplied from the first phase of Sempra Generation's Energia Sierra Juarez wind project in Baja California, Mexico. Both SDG&E and Sempra Generation are subsidiaries of Sempra Energy.
SDG&E selected the project as part of the utility's 2009 competitive solicitation for renewable resources. The contract is subject to approval by the California Public Utilities Commission and Federal Energy Regulatory Commission.
Construction on Energia Sierra Juarez I, located about 70 miles east of San Diego and just south of the U.S.-Mexico border, is expected to begin in 2012. The project has been under development by Sempra Generation since 2007 and could produce up to 1,200 MW of wind power at full build-out.
Sempra Generation also announced that it reached preliminary agreement on the framework for the sale of a 50% partnership interest in Energia Sierra Juarez to BP Wind Energy. The companies now are working on a joint development agreement for the wind project.
Sempra Generation and BP Wind Energy have existing joint venture partnerships for two wind farms in the U.S., including the 200 MW Fowler Ridge II wind farm in Benton County, Ind., which went into commercial operation in 2009, and the Cedar Creek II wind farm, a 250 MW installation located northeast of Fort Collins, Colo., which is expected to be in commercial operation later this year.
Energia Sierra Juarez will connect to the existing California electric grid at SDG&E's proposed ECO substation in eastern San Diego County via a new cross-border transmission tie-line.
SOURCE: San Diego Gas & Electric