With financing closed for its first renewable energy project in Texas, First Wind will continue engineering and construction activities on the project. The Route 66 Wind installation is expected to deliver power to the ERCOT (Electric Reliability Council of Texas) power markets through the new CREZ (Competitive Renewable Energy Zone) transmission system.
“This financing is an important milestone for the construction of Route 66 Wind," said Paul Gaynor, CEO of First Wind, alluding to the company's first project in the state of Texas. "We appreciate the commitment of our financial and construction partners to help us bring cost-competitive, renewable energy to Texas. We also appreciate the support we’ve received from county officials and local landowners."
Construction work began in late 2013, and is expected to create hundreds of jobs in the state of Texas. M.A. Mortenson is acting as the prime contractor. With construction activity on Route 66 Wind starting in 2013, the project will qualify for the federal wind energy Production Tax Credit (PTC).Vestas will supply 75 V110 turbines with a capacity of 2MW each to the project near Amarillo, Texas.
"We are glad to be able to make a direct investment into the local economy throughout the construction and successful operations of the project," Gaynor added.
On the financing end, Morgan Stanley and Santander acted as joint lead arrangers, with Morgan Stanley serving as the administrative agent. The two have also committed tax equity into the deal. Morgan Stanley Commodities is providing a long-term ERCOT power hedge and BayernLB is providing term debt financing for the project.