Enel Green Power North America (EGP NA) and EFS Prairie Rose, a GE Capital subsidiary, have closed an equity partnership to construct the 200MW Prairie Rose wind farm in northern Rock County, Minnesota, US.
EFS Prairie Rose will invest approximately $156m to acquire a 51% stake in the project, which is estimated to cost $305m, while EGP NA will acquire a 49% stake in the wind farm and serve as project manager, through its investment of $149m.
EGP also has the option to buy a 26% stake from EFS Prairie Rose on specific dates in 2012 and 2013.
A syndicate led by JP Morgan, including Wells Fargo Wind and Metropolitan Life Insurance Company, has committed to a tax equity contribution of approximately $190m, pursuant to capital contribution agreement between EGP NA and EFS Prairie Rose.
The funds will be released on the commercial operation date expected in the fourth quarter of 2012, subject to fulfillment of requirements outlined.
EGP NA has provided a parent company guarantee for the equity partnership agreement for the project, which is supported by a 20-year power purchase agreement (PPA).
The PPA calls for the supply of all its power output to Northern States Power Company, a subsidiary of Xcel Energy.
In 2011, GE signed an agreement with EGP NA to supply 119 of GE's 1.68MW wind turbines for the project.
The Prairie Rose Wind project will offset approximately 650,000t of CO2 per year and help the US state of Minnesota meet its target of generating 25% of its electricity from renewable sources by 2025.
Image: The 200MW Prairie Rose wind project in Minnesota will power 75,000 homes in the region. Photo: GE Energy Financial Services.