The GE unit now owns 51% of the project. Enel Green Power North America, a subsidiary of Enel Green Power, committed approximately $149 million for a 49% ownership stake and serves as project manager. In addition, GE signed an agreement last year with Enel Green Power North America to supply 119 of GE’s 1.68 MW wind turbines for the project.
The GE unit and Enel Green Power North America also raised approximately $190 million in tax equity, to be provided by a syndicate led by J. P. Morgan, which includes Wells Fargo Wind Holdings LLC and Metropolitan Life Insurance Co. The tax equity will be funded at project completion and will reduce both GE Energy Financial Services’ and Enel Green Power North America’s ownership stakes in the wind farm.
The project, which is expected to cost approximately $305 million, is located near Hardwick, northwest of Luverne, Minn. Construction is being managed by Minneapolis-based Mortenson Construction, and is expected to be completed later this year.
The wind farm will supply all of its power to Northern States Power Co., a subsidiary of Xcel Energy, under a 20-year contract. Enel Green Power North America will have the option to purchase up to an additional 26% ownership stake from the GE unit later this year and in 2013.