Enel, through its US renewable subsidiary Enel Green Power North America, Inc. (EGPNA), has signed a 12-year, renewable energy power purchase agreement (PPA) with food and beverage company Danone North America for physical delivery of the renewable electricity associated with 20.6 MW, leading to an additional 50 MW expansion of Enel's High Lonesome wind farm in Upton and Crockett Counties, Texas, that will increase the plant’s total capacity to 500 MW.

The construction of the 50 MW expansion is currently underway and operations are due to start in the first quarter of 2020.

Enel announced that it has started operations of 450 MW at High Lonesome

Apart from the PPA noted above, the energy produced by a 295 MW portion of the project will be hedged under a Proxy Revenue Swap (PRS) with insurer Allianz Global Corporate & Specialty, Inc.'s Alternative Risk Transfer unit (Allianz), and Nephila Climate. "The PRS is a financial derivative agreement designed to produce stable revenues for the project regardless of power price fluctuations and weather-driven intermittency, hedging the project from this kind of risk in addition to that associated with price and volume," Enel said

Under the PRS agreement, High Lonesome will receive fixed payments based on the expected value of future energy production, with adjustments paid depending on how the realized proxy revenue of the project differs from the fixed payment.

The wind farm is due to generate around 1.9 TWh annually, Enel said

In Texas, Enel currently operates the 63 MW Snyder wind farm, located in Scurry County and is building one of the largest solar plants in the state, the 497 MW Roadrunner solar farm.

Tags:
Enel   Contract awards   Texas  

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