Terra-Gen Power closes financing for Alta Wind power plants
The completion of the Alta Wind VII and IX projects will bring the total capacity of the Alta Wind Energy Center located in Tehachapi, Calif. to 1,320 MW, of which 1,020 MW are currently in operation
New York City, April 17, 2012 — Terra-Gen Power, an affiliate of ArcLight Capital Partners and Global Infrastructure Partners, closed a $650 million financing for the 168 MW Alta Wind VII and 132 MW Alta Wind IX projects.
The completion of the Alta Wind VII and IX projects will bring the total capacity of the Alta Wind Energy Center located in Tehachapi, Calif. to 1,320 MW, of which 1,020 MW are currently in operation.
The American Wind Energy Association's recent market report for 2011 identified AWEC as the nation's largest wind farm. Terra-Gen recently sold the Alta Wind VIII (150 MW) phase to Brookfield and has entered into an agreement to sell the Alta Wind VI phase (150 MW) to Everpower.
The Alta VII and IX financings include construction and seven-year term loans, bridge loans to the ITC cash grants from the Department of Treasury, and ancillary credit facilities. The proceeds of this financing will be used to reimburse funds previously advanced by ArcLight Capital Partners and Global Infrastructure Partners for development of the projects, as well as to fund the balance of the projects' construction costs. Together the projects will use 100 V90-3.0 MW turbines manufactured by Vestas-American Wind Technology, Inc.
Alta Wind VII & IX, like all earlier phases of the Alta Wind Energy Center, will sell their renewable energy to Southern California Edison under separate power purchase agreements carved out from a 1,550 MW master power purchase agreement, and will be managed, operated and controlled by Terra-Gen Power.
The projects will each interconnect to and utilize SCE's Tehachapi Renewable Transmission Project. Blattner Energy, Inc. is leading the construction of the projects that are expected to be complete by in the 4th quarter of 2012.
When the initial 1,550 MWs of the Alta Wind Energy Center are constructed, the Alta projects will have increased wind industry jobs in California by 20 percent, and created more than 3,000 domestic manufacturing, construction, operation and maintenance jobs. The Alta projects will also contribute more than $1.2 billion to the local economy in Kern County, and reduce carbon dioxide emissions by more than 52 million metric tons, the equivalent of taking 446,000 cars off the road.