Duke Energy (NYSE: DUK) took another step in expanding its renewable energy portfolio, acquiring a 70-megawatts (MW) wind power project in Pennsylvania–the company’s first in the eastern U.S.
Duke Energy will purchase the North Allegheny Windpower Project from wind turbine manufacturer and project developer Gamesa Energy USA. The North Allegheny project consists of 35 Gamesa wind turbines, each capable of producing 2 MW of electricity.
Construction of the wind power project, located in Blair and Cambria counties, Pa.–roughly 95 miles east of Pittsburgh–is nearing completion and final commissioning is under way. With the acquisition comes a 23.5-year power purchase agreement to sell all of the output from the wind farm and associated renewable energy credits to FirstEnergy (NYSE: FE). The site will begin generating electricity for FirstEnergy later this year.
Wouter van Kempen, president of Duke Energy Generation Services (DEGS), said, "This acquisition immediately expands our wind power portfolio beyond the western U.S., where we have half a dozen projects already in operation or under construction."
The acquisition is expected to close in 3Q09. No other terms were disclosed.
Duke Energy has more than 500 MW of wind-powered generation in operation–a figure that will rise to more than 700 MW by the end of 2009, the company said. Duke Energy has an additional 5,000 MW in potential wind energy development projects.
May marks the two-year anniversary of Duke Energy’s entrance into the wind power business. In total, the company has committed more than $1 billion since 2007 to build its wind energy business.
Duke Energy Generation Services (DEGS) develops, owns and operates electric generation for large energy consumers, municipalities, utilities and industrial facilities.
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