RES America Developments has secured a contract from Xcel Energy to construct the 200MW Pleasant Valley wind farm in the US.
Situated near Austin, Minnesota, the wind farm is adjacent to Xcel Energy's 100MW Grand Meadow wind project and is part of 600MW of wind power the company is planning to generate in the upper Midwest service territory.
Construction is expected to start in mid-2014 and complete in 2015.
RES Americas president and CEO Susan Reilly said, "This project will generate clean, renewable energy, and provide one of the lowest cost power resources currently available in the region."
RES said that following a request for proposals in February 2013, Xcel selected Pleasant Valley and two other projects to submit to regulators for review.
Xcel submitted the projects to the Minnesota Public Utilities Commission and the North Dakota Public Service Commission for consideration and notified regulators in South Dakota, Wisconsin and Michigan.
The projects combined will generate enough energy to serve 180,000 homes and reduce customer costs by $180m.
After completion, the projects are expected to reduce carbon emissions by 1.2 million tonnes each year in the upper Midwest service territory, where Xcel is currently planning to reduce emissions by 30% by 2020 from 2005 levels.
Northern States Power Minnesota president and CEO Dave Sparby said, "The Pleasant Valley Wind Project along with the other wind purchases we are making will lower our customers' bills, offer protection from rising fuel costs and provide significant environmental benefits."
Image: Xcel is planning to generate 600MW of wind power in upper Midwest service territory. Photo: courtesy of FreeDigitalPhotos.net.