Avangrid and Puget Sound Energy (PSE) have signed a power purchase agreement (PPA) for the 199.5MW Big Horn I wind energy project in Klickitat County, Washington, US.

The deal is the fourth PPA between the two companies in the Pacific Northwest region.

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According to Avangrid, Big Horn I is capable of meeting the electricity requirements of approximately 70,000 homes annually.

The Iberdrola Group subsidiary will upgrade the main components of the wind farm to extend the facility’s lifespan and improve performance, in line with its agreement with Puget Sound Energy. This work is likely to create around 200 construction jobs.

Puget Sound Energy senior vice-president and chief development officer Craig Pospisil said: “We are excited that this latest agreement with Avangrid helps us meet some of the most ambitious clean energy laws in the nation while delivering on our customer’s expectations.

“We are proud to be a partner in developing Washington’s wind resources – this project is another milestone in our continued investment in the state’s energy economy.”

The upgraded facility is set to become commercially operational in 2028.

Big Horn I, which was built by PPM Energy in 2006, is equipped with 133 1.5MW GE turbines. PPM Energy is currently part of Avangrid.

Avangrid estimates the Big Horn I wind farm will generate $16m in tax revenue over its operating life, in addition to the $14.4m it has already contributed since launch.

Big Horn I is part of a series of agreements between Avangrid and Puget Sound Energy, including deals for the Golden Hills, Lund Hill and Klondike III projects. All four projects are situated in the Columbia River Gorge along the Oregon-Washington border.

Together, these facilities have a combined capacity exceeding 600MW.

Avangrid’s operations span more than 11GW of installed energy capacity across 25 states, comprising nearly 100 renewable projects.

Avangrid CEO Jose Antonio Miranda said: “For more than two decades, Avangrid has been investing in Washington state to develop energy projects that support the region’s growing energy needs while delivering lasting economic benefits to the local community.

“This builds on our strong relationship with PSE and ensures Big Horn I continues to provide reliable electricity while sustaining local jobs, tax revenue and long-term value for the region.”