Financed and under construction: Pattern Energy project to be among first to tap Texas CREZ line
August 23, 2013
Pattern Energy Group LP (PEG LP) closed the financing and started construction on its Panhandle Wind facility, a 218-MW wind power project located in the Texas Panhandle.
The project is utilizing Texas’ new Competitive Renewable Energy Zone (CREZ) transmission infrastructure, which connects to the state’s main power grid operator, the Electric Reliability Council of Texas (ERCOT).
Mortenson is overseeing construction of Panhandle Wind, which will use 118 GE 1.85-MW turbines. Completion is estimated to be achieved in August 2014. Panhandle Wind will sell power to Citigroup Energy, Inc. under a long-term hedge offtake agreement.
“The Panhandle Wind Project will be among the first projects in the Texas Panhandle to connect to the new CREZ transmission lines, which PEG LP was instrumental in bringing to fruition,” said CEO Mike Garland.
The project will provide more than 200 construction jobs, at least 12 permanent operations and maintenance positions, and clean energy for up to 60,000 Texas homes without using any of the region’s limited water supplies, Garland said. Over the life of the project millions of dollars in property taxes will be paid to Carson County, the White Deer and Panhandle School Districts, and the Panhandle Groundwater Conservation District. Further, “many millions more” will go to landowners in the form of royalty payments and community benefits, Garland said.
In addition, upon completion of construction, PEG LP will donate over $800,000 to establish the Panhandle Wind Community Fund to support civic and educational causes in Carson County. Panhandle Wind will continue to make annual contributions to the Community Fund over the next decade.
GE Energy Financial Services and Citigroup Global Markets, Inc. will invest structured equity in the project. PEG LP – which developed the project and is serving as its managing member along with providing operations and maintenance – is receiving construction loans from BayernLB, Credit Agricole Corporate and Investment Bank, Nord/LB, Landesbank Baden-Wuerttemberg, RBC, RBS, and Societe Generale.
Look for a story on recent CREZ progress next week in the Wind Energy Weekly.