DALLAS — Austin, Texas will buy up to 300 megawatts of wind energy for 18 years for $31 million per year under a recently approved contract with Lincoln Renewable Energy.
The wind project consisting of 160 wind turbines in Castro County is projected to come online in the fourth quarter of 2015.
Austin is also buying wind power from two other projects by Duke Energy producing up to 200 MW. Those wind farms are scheduled to come online in 2015 and 2016. The 300 MW Castro County project replaces a 170 MW project that was approved last year but did not materialize, officials said.
When the three new projects are all online, Austin Energy will have about 1,350 MW of wind power in its portfolio, moving the city-owned utility toward its goal of 35% renewable energy in 2016 - four years ahead of schedule. Austin Energy also currently has about 50 MW of solar power and 112 MW of biomass.
"The new wind contract has come at a good time and at a good price to meet our renewable energy goal early," said Larry Weis, Austin Energy general manager. "Both persistence and patience have paid off."
The new wind contracts are the last Austin Energy expects to enter into before 2020 since it has reached its renewable energy goal and will now concentrate its efforts at achieving solar energy goals - which includes installing 200 MW of solar by 2020, with half of that installed locally.
Austin carries ratings of AA-minus from Standard & Poor's on its electric utility bonds. Moody's Rates the debt A1. The public utility has about $1.3 billion of outstanding debt, according to Moody's.
