EDF Renewables North America will construct the 247.4-MW Oso Grande wind farm for US utility Tucson Electric Power (TEP) under a build-and-transfer agreement (BTA), both companies announced on Thursday.
The North American renewables unit of Electricite de France SA (EPA:EDF) will develop the Oso Grande farm for a total cost of around USD 370 million (EUR 329.5m). The project will be eligible for federal tax credits allowing TEP to recoup more than two-thirds of its cost over the first ten years of operation and pass along the savings to its customers, the utility said.
The Oso Grande wind farm will be built on a 24,000-acre site southeast of Roswell, New Mexico. Electricity generated by the farm’s 61 turbines will flow from Roswell to Tucson through existing power lines that connect to TEP’s transmission system in Arizona. The expected annual output will be enough to meet the consumption of close to 100,000 households.
The project duo expects to begin construction of Oso Grande later this year and bring the farm online by the end of 2020.
Once completed, Oso Grande will boost TEP’s renewables portfolio that at present includes 277 MW of community-scale solar, 80 MW of wind and 232 MW of rooftop solar systems installed by customers, TEP said. It will surpass the 71-MW Red Horse wind and solar farm, the company’s currently single largest renewable energy system.
TEP also has two other large scale projects in the works. In 2020, the Arizona-based utility expects to switch on the 99-MW Borderlands wind project in New Mexico and the Wilmot Energy Center, a 100-MW solar installation with a 30-MW battery storage system, in Tucson.
(USD 1.0 = EUR 0.89)
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