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Enel and Fortis Sign 10-Year Power Purchase Agreement for US Wind Farm

Posted on: Monday, 13 August 2007, 15:22 CDT

Snyder Wind Farm, which is a subsidiary of the North American unit of Italian utility Enel, has signed a 1.1 million MW, 10-year financial fixed-price power purchase agreement with Fortis Merchant and Private Banking. The agreement is designed to provide Snyder with greater revenue stability for the term of the hedge, and to accommodate wind seasonality.

The nearly completed Snyder Wind Farm is a 63MW project that consists of 21 Vesta V90s turbines, located in Snyder County, Texas. The agreement begins in 2008 and will run until February 2018. Fortis Energy Marketing & Trading, a division of Fortis Merchant and Private Banking, structured the transaction. Additional transaction terms were not disclosed.

David Duran, managing director of origination and marketing at Fortis, said: "This is the second large hedge transaction Fortis has executed in Electric Reliability Council of Texas in the last month and underscores Fortis's commitment to providing the energy industry with an efficient single source for its commodity and financing need."

"The Snyder project demonstrates Enel's continued commitment to the development of a diverse renewable energy portfolio in the US," added Toni Volpe, COO of Enel North America. "The agreement with Fortis is an important component to the success of the Snyder Wind Farm."

Enel North America is dedicated exclusively to the generation of electricity from renewable energy resources and currently operates over 400MW of wind, hydropower, geothermal and biomass projects.

Source: Datamonitor

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