US-based electric utility Austin Energy has received an approval from the Austin City Council to sign a power purchase agreement (PPA) with Lincoln Renewable Energy (Lincoln) for the proposed 300MW Castro County wind project in Texas.
Under the deal, Austin Energy is set to purchase electricity generated by the proposed wind project for a period of 18 years at a price of $31m annually.
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According to Austin Energy, the wind power will be purchased at a price ranging from $26 per MWh to $36 per MWh.
To be equipped with 160 wind turbines, the project is expected to become operational in the fourth quarter of 2015.
The Castro County wind power project will be developed to replace a 170MW project that was approved in 2013 but did not materialise.
Austin Energy had also signed PPA with Duke Energy for two wind projects of 200MW capacity each and when all the three projects are online, it will have nearly 1,350 MW of wind power in its portfolio.
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By GlobalDataThe new project is said to help Austin Energy to achieve its goal of delivering 35% of all of its electricity from renewable sources.
Austin Energy general manager Larry Weis said, "The new wind contract has come at a good time and at a good price to meet our renewable energy goal early. Both persistence and patience have paid off."
