Under the agreement, the consortium has committed to funding the 150 MW Origin wind project located in Garvin, Murray and Carter counties in Oklahoma and the 200 MW Goodwell wind project in Texas County, Oklahoma and Hansford County, Texas.
The consortium will contribute the funds once the plants enter service, which is scheduled for the fourth quarter of 2014 for Origin and the fourth quarter of 2015 for Goodwell, subject to compliance with the requirements set out in the capital contribution agreement. Both projects are supported by long-term power purchase agreements.
Francesco Venturini, Enel Green Power CEO, stated:
We are pleased to have reached this agreement, which further demonstrates EGP’s commitment to North America, where we have grown in a diversified manner, encompassing all the renewable technologies, from hydro to solar, from geothermal to wind. Specifically, in the wind sector, we have tripled our installed capacity in North America in the last four years only.
Within the framework of the agreement, the J.P. Morgan-led consortium will make a capital contribution totalling about US$400 million to EGP-NA. In exchange, the consortium will receive an equity interest with limited voting rights. This interest will allow the consortium to obtain a percentage of the fiscal benefits to be attributed to the Origin and Goodwell projects.
Enel Green Power will secure the obligations arising from its North American subsidiary’s agreement through a parent company guarantee, not extended to return on investment.