Western Wind Energy (WND.V) has created a subsidiary to focus on development of utility scale solar, Western Solargenics.
The new subsidiary is in the process of developing, with the intention of constructing, utility scale solar energy electrical generating facilities in California and Arizona. The company also plans to combine wind and solar on appropriate sites.
Western Wind is entering the solar sector to take advantage of its specialized asset holdings. The company has significant firm transmission rights in California and owns a lot of land that’s perfect for solar. Some of the highest levels of solar radiation in North America occurs on its land, which also has an abundant supply of water for solar thermal generation.
Other reasons the company sites include:
– California has the highest energy prices in North America with a further significant premium paid for energy delivery during solar energy’s peak generation profile of super on-peak time of day delivery;
– 30% up front federal tax credit available on the entire project to tax equity investors plus accelerated depreciation allowing for substantial incentives to tax investors at the project level; and
– With wind energy production in California having a peak generation hour of 12 midnight and solar energy having a peak generation hour of 3:00 p.m., the combination of wind energy and solar energy offers the ratepayers of California a significant amount of certainty, reliability and delivery of both energy and capacity.
Western Wind Energy has been approached by several utilities in the Southwestern United States requesting combination solar/wind energy generation facilities.
Western Wind Energy is the largest producing pure wind energy, publicly traded company (non-income trust) in North America. Western Wind Energy currently produces 34.5 MW of energy from over 500 wind turbine generators located in Southern California. Western Wind also has over 155 MW of expansion power sales agreements with the associated projects in the late stage of development. In addition, Western Wind Energy has a credible pipeline of over 1,300 MW of site locations in the State of California.
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