A 300 MW wind power project in Lynn County, Texas has closed its financing. The project is managed by Lincoln Clean Energy, which is owned by I Squared Capital. Morgan Stanley will provide construction and term financing and long-term tax equity will come from BHE Renewables, a subsidiary of Berkshire Hathaway Energy Company.
“The successful financing of this project underlines the competitiveness of U.S. wind power. With the uncertainty of tax reform behind us, the next three years are going to be big for renewables and LCE is well-positioned to execute on more than 1,000 megawatts of advanced-stage development projects across Texas and the Midwest,” explained the CEO of Lincoln Clean Energy, Declan Flanagan.
One hundred and twenty GE Renewable Energy 2.5-127 wind turbines will be used in the new wind power farm. GE Renewable Energy will also support the project with long-term services. Lynn County has a population of about 6,500 and is located approximately 30 miles from Lubbock. Lincoln Clean Energy has developed over 1800 MW of renewable energy since 2011. The company has offices in Chicago and Austin, Texas.
Texas is the no.1 wind power state in the US, and still has many wind resources that can be developed.
Of course, this is great news for a state which traditionally has very much emphasized the oil and gas industry. Texas is also mostly a conservative state politically, which makes its wind power status somewhat surprising.
Wind power in Texas has been predicted to surpass that of coal in a fairly short time.
One of the interesting things about coal in Texas is where much of it comes from, “Texas is far and away the largest purchaser of Wyoming coal, PRB coal. As these coal plants get used less and less, many will retire in the next few years. PRB mines are losing their biggest customers,” said Rice University professor Daniel Cohan.
If wind continues to put downward pressure on coal use in Texas, will coal eventually drop out of contention?
Hopefully, if coal use declines more and more, Texas air quality will improve.
Image Credit: GE Renewable Energy