Enel Green Power North America Inc. on Dec. 23 announced the initial completion of its High Lonesome Wind Power project in Texas, and said it will expand the facility to fulfill a new power purchase agreement for a portion of the plant's output.
The 450-MW High Lonesome wind farm, in Upton and Crockett counties, Texas, is the largest wind project now in operation in parent company Enel SpA's global renewables portfolio, the company said in a news release.
After signing a power purchase agreement with food and beverage company Danone North America, a unit of Paris-headquartered Danone SA, Enel Green Power will add another 50 MW of generating capacity to the High Lonesome project, to be operational in the first quarter of 2020. Danone will buy 20.6 MW under a 12-year agreement, part of its goal to supply all of its electricity needs with renewable resources by 2030.
The additional capacity to be added at High Lonesome puts Enel's investment in the project's construction at about $720 million, it said.
Also, 295 MW from the High Lonesome project will be hedged under a proxy revenue swap with insurer Allianz Global Corporate & Specialty Inc.'s Alternative Risk Transfer unit and Nephila Climate, a provider of weather-related risk management projects. The High Lonesome project will receive fixed payments based on the expected value of future energy production, with adjustments depending on how actual revenue aligns with the fixed payment.
Enel said the swap arrangement is its first. Allianz and Nephila Climate already participate in such an arrangement with private developer Scout Clean Energy LLC for the output of its Ranchero Wind Project, also in Crockett County, Texas, as well as two other wind projects owned by ENGIE North America Inc.