Navajo Nation advances toward large wind project
The first phase of the project, anticipated to be 48 turbines with capacity of 85MW, is scheduled to begin construction by December 2010. Capacity factor at the site, near the edge of a mesa, is predicted to be between 29%-35%, according to materials presented to the council. A more tentative 150MW second phase is also contemplated.
The Navajo Tribal Utility Authority, through a for-profit subsidiary, NTUA Wind, will develop, finance, construct, operate and own 51% of the projects. The other 49% will belong to Boquillas Wind, a partnership of Edison Mission Energy and Foresight Wind Energy. Foresight and NTUA have been working together since 2005 and created the joint-ownership model, with NTUA as the majority owner, in 2007.
The anticipated cost of the first phase is $199m. Edison Mission is taking the lead in securing funding for the projects, based on an anticipated power purchase agreement. NTUA intends to acquire at least 10MW of project capacity. The developers are targeting a price range of $80-$85 per megawatt hour.
A 60/40 debt-equity ratio is anticipated, with NTUA Wind providing 51% of the equity.
The Navajo Nation anticipates several benefits from the project including a source of clean electricity for its people, a revenue stream to its central government and green job training and employment opportunities.
Photo via Flickr.
Published: Wednesday, December 30 2009
