Iberdrola signs purchase deal for California wind farm
By Christina Williams
Sustainable Business Oregon editor
Iberdrola Renewables signed a power-purchase agreement for its Manzana wind project, shown here under construction, in Kern County, Calif.
Iberdrola Renewables announced Wednesday that it signed a 20-year deal with the City of Santa Clara's Silicon Valley Power to sell 50 megawatts of power from the Manzana Wind Power Project the company is building in central California.
(Update: On Thursday, Iberdrola announced it had sold an additional 100 megawatts of the electricity to be generated to San Diego Gas & Electric in a 20-year contract.)
It is the first power-purchase agreement signed by Iberdrola for the project, which will provide a total of 189 megawatts of wind power. An original bid by Pacific Gas & Electric Corp. to buy and operate the wind farm upon completion fell apart last year.
It's a tough market for power-purchase agreements as Iberdrola found out in North Carolina late last year. The company scrapped plans to build a $600 million wind farm there after being unable to find a buyer in the region for the electricity the project would have generated.
The market is better in California, however, where an aggressive renewable portfolio standard is motivating utilities to add clean energy sources.
Manzana, which will sport 126 GE wind turbines, is expected to be operational in the fourth quarter of this year.
The 50-megawatt purchase will provide electricity to about 20,000 typical Santa Clara homes.
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