Wall-based NJR Clean Energy Ventures (NJRCEV), the unregulated distributed power subsidiary of New Jersey Resources (NJR), acquires its third onshore wind project. The Alexander Wind Farm will be located on 7,000 acres of land in Rush County, Kansas, approximately 120 miles northwest of Wichita. NJRCEV will invest approximately $85 million to construct, own and operate the wind farm with a total capacity of 48 megawatts. NJRCEV’s expected in-service date is fall of 2015.
“With the Alexander Wind Farm, NJR Clean Energy Ventures continues to successfully execute its distributed power strategic plan,” said Laurence M. Downes, chairman and CEO of New Jersey Resources. “As renewable energy becomes an increasingly larger and important part of our nation’s energy future, we will continue to look for investment opportunities that strengthen our distributed power portfolio, are consistent with our core values of quality service and environmental stewardship, reduce our reliance on investment tax credits from solar investments and benefit our Company and shareowners.”
NJRCEV acquired the shovel-ready Alexander Wind Farm from OwnEnergy, Inc., a developer of midsize and community wind projects. It is the third and largest wind farm project NJRCEV purchased from OwnEnergy. The first was the Montana-based Two Dot Wind Farm, placed in service in June 2014. NJRCEV expects to place the second project, the Carroll Area Wind Farm, located in Iowa, in service by spring of 2015.
The energy produced at the Alexander Wind Farm, as well as the renewable attributes, will be sold through power purchase agreements (PPA) to two separate customers. The Kansas City Board of Public Utilities (KCBPU) has signed a 20-year PPA for approximately 50 percent of the energy. The KCBPU currently serves approximately 65,000 electric and 59,000 water customers in Wyandotte County, Kansas. The remaining energy will be purchased through a 15-year PPA by Yahoo!, Inc., the global Internet corporation headquartered in Sunnyvale, CA. Yahoo will use the wind power to offset much of its energy usage in the Great Plains region.
Additionally, NJRCEV expects the wind farm will qualify for federal production tax credits (PTCs), which are based on kilowatt-hour output. All PTCs generated by the Alexander Wind Farm will be retained by NJR.
NJRCEV invests in, owns and operates distributed power projects that generate clean energy and provide low-carbon energy solutions. These solutions benefit its customers, while providing growth opportunities for shareholders. To date, NJRCEV’s approach has focused on commercial and residential solar project development in New Jersey and expanded to include onshore wind projects in the Midwestern United States.Related Articles: