A-Power Receives NDRC Approval for Texas Wind Farm Project Company
Feb 23, 2010
-Power Energy Generation Systems Ltd., a leading provider of distributed power generation systems in China and a fast-growing manufacturer of wind turbines, announced Feb. 16 that its subsidiary, Shenyang Power Group (SPG) has completed the establishment of a project company related to the development of a 600-megawatt (MW) wind farm in Texas and has made an initial cash contribution of $36.625 million. In connection with the capital contribution, SPG has received final approval from the Chinese National Development and Reform Commission (NDRC) to proceed with this project.
On Dec. 16, 2009, SPG entered into a limited liability company (LLC) agreement with United States Renewable Energy Group Wind Partners I. USREG Wind is indirectly jointly owned and controlled by US Renewable Energy Group and Cielo Wind Power LP. Under the LLC agreement, SPG and USREG Wind have established a Delaware limited liability company for the purpose of owning, designing, developing, constructing, managing and operating a wind energy power plant to be located in Texas with a total nameplate capacity of 600 MW.
The project is expected to cost in total approximately $1.5 billion, a portion of which is designated for wind turbine purchases. The parties will be seeking to obtain financing from third party lenders for most of the cost of the project. No financing commitments have been received to date. A-Power, the parent company of SPG, has been designated to supply wind turbines to the project in Texas, and an affiliate of Cielo will develop the project pursuant to the terms of a development services agreement. In addition to the thousands of American jobs that are anticipated will be created throughout the project's 30-year life, a minimum of 70 percent of each turbine will be wholly manufactured in the United States.