Construction of the 227.5-megawatt Crossroads wind farm in northwestern Oklahoma will begin this month after Oklahoma Gas and Electric (OG&E) finalized a development purchase agreement with Renewable Energy Systems America (RES Americas) on Monday.
The agreement transfers ownership of the $451 million project to the utility and also initiates a turbine-supply deal with Siemens.
The wind farm, located in Dewey County, will feature 95 Siemens wind turbines capable of generating 2.3 MW each, as well as three 3-MW direct drive turbines. The direct drive turbines are the first of its kind to be installed in the United States.
“Siemens looks forward to installing its first three SWT-3.0-101 direct drive wind turbines in the United States, coming only a few months after the market release of this new, gearless technology,” announced Jan Kjaersgaard, vice president and general manager of Siemens Energy Wind Power Americas, a subsidiary of Siemens A.G. (FWB:SIE, NYSE:SI)
RES Americas will be in charge of the construction of the wind facility. The renewable energy developer estimated that the project will create up to 250 construction jobs in Oklahoma.
   |
   |
Upon the wind farm’s completion in the second half of 2011, OG&E will connect it to the new Windspeed transmission line. The new distribution line was activated early this year to distribute wind power to Oklahoma City as well as areas included in the utility’s 30,000 square mile service territory.
Once the wind project surges into full power production in 2012, average residential power consumers will see their monthly bills rise between 59 cents and 65 cents. However, the price increase will be offset by 2 cents in power savings as early as 2013, according to the Oklahoma Corporation Commission. From 2014 to 2012, the facility will provide monthly savings of up to $1.82.
«By its third year in operation, we expect Crossroads to be delivering net savings to our customers for the balance of the project’s 25-year expected life,’ said Jesse Langston, vice president of utility commercial operations.
OG&E, a subsidiary of OGE Energy Corporation (NYSE:
OGE
), will have a total wind capability of 780 MW with the addition of the Crossroads wind farm to its portfolio. This amounts to approximately 10 percent of the utility’s total generating capacity.
