US-based power producer EDF Renewable Energy is set to acquire the first phase of up to 500MW Hereford wind project in Texas from Lincoln Renewable Energy.
The company has inked a membership interest purchase agreement with Lincoln for the 200MW phase that is scheduled to commence construction later in 2013 to qualify for the Production Tax Credit (PTC).
In addition, EDF is seeking negotiations to secure a long-term, fixed-price hedge agreement for the expected energy production of the first phase of the project.
Lauding Public Utility Commission of Texas for the establishment of CREZ transmission project, EDF Renewable Energy executive vice president Ryan Pfaff said the move would provide access-to-market for low-cost, clean renewable energy, thereby boosting the economic development at the regional level.
“The Production Tax Credit extension in early 2013, along with the CREZ transmission build-out, creates a compelling opportunity for EDF Renewable Energy to strengthen our presence in the wind-rich Texas Panhandle,” added Pfaff.
Having secured an option to acquire the second phase of the project, EDF is planning to increase its installed wind capacity in the state to 972MW.