Greentech Lead America: GE unit GE Energy
Financial Services has purchased 51 percent ownership of the 200-megawatt
Prairie Rose wind project from Enel Green Power for approximately $156 million.
Enel Green Power North America, a subsidiary of Enel Green Power, committed
approximately $149 million for a 49 percent ownership stake and serves as
project manager.
The project is currently under construction and will
utilize119 of GE’s1.68-megawatt wind turbines. Minneapolis-based Mortenson
Construction is constructing the project. The total project cost is estimated
approximately $305 million and the project is expected to be completed later
this year.
The GE unit
and Enel Green Power North America also raised approximately $190 million in
tax equity to be provided by a syndicate led by J. P. Morgan.
The tax equity will be funded at project completion and will reduce both GE
Energy Financial Services’ and Enel Green Power North America’s ownership
stakes in the wind farm. Enel Green Power North America will have the option to
purchase up to an additional 26 percent ownership stake from the GE unit later
in 2012 and in 2013.
“This transaction showcases GE’s ability to provide
both world-class technology and flexible financing structures for our customers
and advances our long-term partnership with Enel Green Power, an established
renewable energy leader,” said Kevin Walsh, managing director of Power and
Renewable Energy at GE Energy Financial Services.
Prairie Rose is expected to generate enough electricity
to power 75,000 homes and displace approximately 650,000 tonnes of greenhouse
gas emissions per year. Under a 20-year contract all the electricity produced
by the wind farm will be sold to Northern States Power Company, a subsidiary of
Xcel Energy.
The wind farm will help Minnesota meet its mandate to
generate 25 percent of its electricity from renewable sources by 2025.
GE to install more than 1500 units 1.6-100 wind turbine
globally by next year
GE recently announced that it committed to provide its
1.6-100 wind turbine for projects that will add 1.8 gigawatts of capacity to
the world’s clean energy supply by end of 2012. GE has received orders for the
1.6-100, from North America, have totaled $3.6 billion since its introduction a
year ago. GE estimated that more than 1,500 units will be installed globally by
2013.
editor@greentechlead.com