Enel Green Power North America (EGPNA), the US subsidiary of Italian gas and electricity distributor Enel, has started construction works for its largest wind farm, the 450MW High Lonesome facility in Upton and Crockett Counties, Texas.
Built with an overall investment of around $600m, the project is reported to be part of the investment outlined in Enel’s 2019-2021 strategic plan. Once complete, it will be the largest wind farm in Enel’s global renewables portfolio.
To be fully operational by the end of this year, the wind farm will be able to generate around 1.7TWh of clean energy annually, while avoiding emissions of more than 1.1 million tons of carbon per year.
EGPNA head Antonio Cammisecra said: “The start of construction of our largest wind project to-date represents a major commitment to growing our business in the US and specifically in Texas.
“The project underscores our ability to work with partners to tailor energy solutions to fit their needs and continue to manage and deliver to our customers the complex deals necessary in today’s evolving energy market.”
The project has a proxy revenue swap (PRS) for a 295MW portion of the High Lonesome wind farm. The PRS is a risk management strategy related to price and volume.
Enel entered into the PRS with insurer Allianz Global Corporate & Specialty’s Alternative Risk Transfer unit (Allianz) and weather and climate risk management products provider Nephila Climate.
Under the agreement, High Lonesome will receive fixed payments based on the expected value of future energy production.
Allianz Risk Transfer managing director Karsten Berlage said: “The construction of High Lonesome is a strong testament to the popularity and success of innovative renewable energy protections.
“The majority of today’s stakeholders champion the continued growth of renewables and that is why Allianz is committed to flexible strategies such as the PRS that mitigate those risks – long term.”
Currently, Enel operates the 63MW Snyder wind farm, which is located in Scurry County, Texas. EGPNA also operates the first solar-geothermal hybrid plant in Nevada, and the 200MW Goodwell wind farm in Oklahoma, among others.