Enel Green Power SpA (Egp) today announced the conclusion of an equity partnership agreement between its US subsidiary (Enel Green Power North America Inc., Egp Na) and the subsidiary of Ge Capital (Efs Prairie Rose, LLC) for the construction of the Prairie Rose wind farm in northern Rock County, Minnesota, also signing a capital contribution agreement with a JP Morgan associate of approximately $190 million.
The plant project, which will cost approximately $305 million, will have a total capacity of 200 MW and is supported by a long-term plant power purchase agreement (PPA).
Under the terms of the equity partnership agreement, EFS Prairie Rose will invest US$156 million, for a 51% stake in the project, while EGP Na, while being the project manager, will invest US$149 million, i.e. for a share of the 49%.
But Enel Green Power North America has an option to purchase the plant equal to 26% (maximum) of the plant on specific dates in 2012 and 2013.
The equity partnership agreement is supported by a parent company guarantee from EGP.
The members of the consortium will release the funds only upon entry into operation of the plant, expected in the fourth quarter of 2012: therefore the members will be entitled to the percentages of the tax and financial benefits.
The Prairie Rose Wind Farm will generate enough wind power to not emit more than 650 tonnes of CO2 annually.
In addition, the wind farm will help the US state of Minnesota reach its goal of generating 25% of its energy from renewable sources.
