CPV secures financing for 152MW Oklahoma wind project

February 19, 2010

Keenan II will use 2.3MW Siemens turbines

Construction on a planned 152-megawatt wind project near Woodward, Oklahoma, is getting underway soon, after developers CPV Renewable Energy Company secured financing for the project.

The company, a subsidiary of Competitive Power Ventures, Inc., said it was aiming to complete construction of the Keenan II wind farm by the end of the year.

New York-based infrastructure construction firm The Delaney Group is to build the wind farm, which will consist of 66 Siemens turbines each rated at 2.3MW output.

The project is slated for an 8,000 acre site 12 miles southwest of Woodward, and is the second phase of a wind farm that should eventually generate 400MW of power.

This second phase alone should generate enough power to supply the equivalent of 45,000 local homes, and should cut the equivalent greenhouse gas emissions to taking 72,000 cars off the road, its developers said.

CPV REC is selling power from the project to the Oklahoma Gas and Electric Company under a 20-year power purchase agreement.

Eight banks are providing debt facilities for the project during construction, which should convert to a term financing facility when operations begin.

Lenders include The Bank of Tokyo-Mitsubishi, Union Bank, Key Bank, Helaba, LBBW, Natixis, ING, and Rabo Bank.

GE Energy Financial Services will provide tax equity for the project.

“Step forward”

Sean Finnerty, CPV REC chief and CPV Senior Vice President, said: “We are pleased to close financing and commence construction on the Keenan II Wind Farm. This is another step forward in CPV’s mission to advance clean, green energy across North America.”

The oversubscription of the debt indicates the strength of the project’s development” - Sean Finnerty

CPV said that the progress on its Keenan wind farm signalled that it “shows no signs of slowing down its brisk pace” in developing renewable energy projects.

In the second half of 2009, the company sealed more than 500MW worth of long-term power purchase agreements, and says it has contracted wind farms due to begin operations in 2010, 2011 and 2012.

Mr Finnerty said there was a high level of interest from the financial community in his company’s power projects, despite the turbulent markets.

He said: “The oversubscription of the debt indicates the strength of the project’s development and level of confidence the market has in the management of Competitive Power Ventures.”