Western Wind deals with California
Published: May 22, 2008 at 4:50 PM
VANCOUVER, British Columbia, May 22 (UPI) -- Vancouver-based Western Wind Energy Corp. announced a deal in California.
Western Wind said it is negotiating offers and is in discussions with major U.S. institutions. In some cases, Western Wind's 120-megawatt Windstar Project could produce $1.7 billion in revenue over 30 years.
The firm originally was offered $228 million for all development rights of its project, including royalty payments pursuant to a 30-year land lease, but, given the renewable energy market, the firm decided it would be more lucrative to develop its own project.
Given such high oil and gas prices, the new market price referent for 2008 is anticipated to be as high as $115 per megawatt-hour for renewable projects. This price is in addition to the Production Tax Credit of $20 per megawatt-hour.
The wind resources at Western Wind's site in Mesa, Calif., have been recorded at about 22 miles per hour.
The project is estimated to cost between $2.3 million and $2.5 million per megawatt. |
