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31.05.2007 » Article » Wind Energy
Deals And Innovation In The Wind Energy Sector
31st May 2007
Duke Energy announced that it has acquired the wind power development business of Tierra Energy, a leading wind power development company located in Austin, Texas, from Energy Investors Funds for an undisclosed amount. The purchase includes more than 1,000 megawatts of wind assets under development in the Western and Southwestern United States.
Three of the development projects - a total of approximately 240 megawatts - are located in Texas and Wyoming, and are anticipated to be in commercial operation by the end of next year, with additional facilities potentially in operation as early as 2009. The power produced will be sold through long-term contracts.
"As our nation's appetite for electricity continues to grow, renewable energy will play a larger role in meeting that demand," said Duke Energy Chairman, President and CEO, James E. Rogers. "This acquisition supports our strategy to increase our investment in renewable energy and national efforts to reduce carbon emissions."
The assets become part of Duke Energy Generation Services (DEGS), a Duke Energy subsidiary that focuses on investments in onsite energy, commercial and renewable energy assets across North America.
Six members of Tierra Energy's senior management team are joining DEGS, including David Marks, formerly Tierra Energy president. Marks becomes DEGS' senior vice president, business development - wind energy.
"We're very excited to be involved with this environmentally friendly technology and that David and his team are joining us," said DEGS President, Wouter van Kempen. "We see wind power as a potential growth opportunity for DEGS, and we plan to spend approximately $400 million in capital expenditures through 2008 to complete the first three development projects. We would expect to begin seeing earnings from these assets in 2009."
Duke Energy currently has purchase agreements for wind generation in Indiana and recently installed solar panels at 10 Indiana schools. The company also recently issued a request for proposal for renewable energy to help meet growing demand in the Carolinas.
Meanwhile GE Energy's wind business has entered into patent licenses with AAER related to GE's variable speed technology for wind turbines.
GE and AAER will independently carry on with their respective businesses of manufacturing and selling wind energy turbines, contributing to the development of the wind energy sector.
GE Energy's wind business is actively engaged in licensing its key patents for wind turbine control technologies to help suppliers and customers meet the rapidly growing need for clean, efficient renewable wind energy. Wind energy is one of the fastest growing energy segments, and GE's proven and patented technologies continue to set the standard in the industry for reliability and grid compatibility.
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