by Brianna Crandall — October 18, 2010—The U.S. Department of Energy has announced a conditional commitment to provide a partial guarantee for a $1.3 billion loan in support of the world’s largest wind farm to date, under a program supported by the American Recovery and Reinvestment Act. The loan will finance the Caithness Shepherds Flat wind project, an 845 megawatt wind-powered electrical generating facility located in eastern Oregon sponsored by Caithness Energy and General Electric (GE) Energy Financial Services.
The Caithness Shepherds Flat wind project consists of 338 wind turbines supplied by GE. The project will use GE’s 2.5xl turbines, which are designed to provide high efficiency and increased reliability, maintainability and grid integration. The wind farm is the first in North America to deploy these turbines, which have been used in Europe and Asia.
Once completed, the project will sell 100 percent of the power generated to Southern California Edison through 20-year fixed price power purchase agreements. The wind facility will be designed to avoid 1,215,991 tons of carbon dioxide per year, equivalent to the annual greenhouse gas emissions from 212,141 passenger vehicles. According to Caithness, the project will directly create 400 construction jobs, followed by 35 permanent jobs on site.
Under the DOE’s Financial Institution Partnership Program (FIPP) financing, the Department of Energy guarantees up to 80 percent of a loan provided to a renewable energy project by qualified financial institutions. The $1.3 billion loan is expected to be funded by a group of institutional investors and commercial banks led by Citi and including the Bank of Tokyo-Mitsubishi UFJ, Ltd., RBS Securities and WestLB Securities Inc.
