US-based renewable energy company First Wind has secured $206m in financing for its Route 66 Wind project in Armstrong and Carson counties, Texas.
Morgan Stanley and Santander have acted as joint lead arrangers and have also committed tax equity into the deal, and Morgan Stanley has also served as the administrative agent
Morgan Stanley Commodities is providing a long-term ERCOT power hedge and BayernLB is offering term debt financing for the project.
Having obtained financing for its first renewable energy project in Texas, the company will continue engineering and construction activities on the 150MW project.
As the prime contractor, MA Mortenson started construction in late 2013 and as the work on the project started before 31 December 2013, it has qualified for the federal production tax credit (PTC).
Once operational, Route 66 Wind Power, a subsidiary of First Wind, is likely to supply its output to the Electric Reliability Council of Texas (ERCOT) power markets through the new Competitive Renewable Energy Zone (CREZ) transmission system.
Vestas Wind Systems was awarded a contract to supply its 75 V110-2.0 MW turbines of 2MW each to the project as part of a master supply agreement with potential for up to 568MW more in the US.
The scope of the contract also includes supply and commissioning of the wind turbines, in addition to a ten-year Active Output Management (AOM) 5000 service agreement, an energy-based availability performance guarantee that ensures minimum lost production of the wind farm.
Vestas is expected to deliver wind turbines for Route 66 in early 2015 with commissioning set for mid-2015.
Image: The Route 66 Wind project in Texas will feature Vestas wind turbines. Photo: courtesy of Vestas Wind Systems.