The AES Corporation (NYSE:AES) today announced plans to begin construction of Buffalo Gap 3, a 170 MW expansion of its Buffalo Gap wind farm near Abilene, Texas. Once completed, the project will increase capacity at Buffalo Gap to 524 MW, making it one of the largest operating wind farms in the United States. Commercial operations are expected to begin mid-2008.
AES signed a seven-year power purchase agreement to sell all of the electricity it produces at the Buffalo Gap 3 wind generation facility to Direct Energy, a subsidiary of Centrica plc. Financial terms of the agreement were not disclosed.
“This expansion underscores AES’s ongoing commitment to renewable energy,” said Ned Hall, President, AES Renewable Generation. “With more than 1,000 MW of wind projects in operation in the United States and another 4,000 MW in various stages of development throughout the world, AES is well positioned to meet growing demand for wind generated power.”
"The Buffalo Gap 3 expansion will allow AES to continue developing renewable energy sources in West Texas, benefiting the local economy through the creation of new jobs and an increased tax base," said Ryan Pfaff, Managing Director, AES Wind Generation. "We are also pleased to further expand our relationship with Direct Energy, a world-class organization that shares our commitment to the West Texas wind market."
AES purchased 74 Siemens model SWT-2.3-93 60 Hz wind turbine generators for the Buffalo Gap 3 project.
“This expansion is consistent with AES’s long-term goal to be a major wind energy producer, and is part of our plan to more than triple our wind-generated megawatts globally by 2011,” said William Luraschi, AES Executive Vice President and President of Alterative Energy. “As one of the cleanest, lowest-cost renewables, wind generation will be an area of continuing focus and priority for AES.”
AES’s Alternative Energy business comprises the company’s activities in wind generation, greenhouse gas emissions offset projects, liquefied natural gas and other technologies.
AES entered the wind generation business in 2004. The company’s wind development projects are located primarily in the United States and Europe. AES has plans to expand its wind business to other countries where it does business, including countries in Asia and Latin America.
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