| |
VIPO Energy intends to develop, finance, operate and potentially sell the wind energy projects over the next 5-6 years. |
| |
|
The projects will include (i) the development of the first 100 MWs on the Harte Ranch, expected to attain financial closings in 2012-13 and be in service in 2014, and with the expectation of addition property to be acquired by VIPO (ii) with the installation of the 500 MWs, the Company will be positioned to create scalable and easily replicated facilities utilizing to a large degree existing operational overhead and infrastructure to identify extremely favorable locations, selecting optimal equipment, and managing the development and financing. |
|
| |
By acquiring the land with wind rights via the acquisition of Harte Ranch, the Company has started the permitting process, meteorological micro-studies, and preparation for grid-access, with favorable wind conditions (The one year wind data collected and analyzed by installed meteorological tower indicates average wind speed more than 8.0 m/s) and proximity to the grid access, the Harte Ranch is ideally located in an economically underdeveloped area, with conditions favorable to obtaining environmental, land-use, and other permits. |
| |
For the near term, the first 100 MW of wind generation is projected to be
operational by the summer of 2014. |
| |
| The Company's Near-Term Analysis demonstrated that while options for connecting the initial phase of the project to either the 230-kV line between Boone and Comanche or between Boone and Midway are available, the construction of a new transmission line to existing substations should allow for greater capability and flexibility to deliver power to several utilities. Four options for new transmission lines were studied using the 2010 summer peak period transmission model. |
| |
| Table 1 demonstrates that the project could deliver the first phase of 500
MW to the Comanche and Boone Substations. |
|
| Where feasible, additional projects will share resources, particularly in the area of transmission capacity, operating and maintenance facilities to accomplish economies of scale in installation and operations with standard contracts, guarantees, warranties, and insurance will protect the Company from financial and operational risk. Selection of cost effective equipment optimized for each location will maximize return on investment for each project. |
| |
| Each project is expected to produce an Internal Rate of Return 19%. Tax investors will be able to offset tax liabilities with tax benefits from the wind project. |
| |
| The aggregate capital cost of the first 500 MWs is projected at most 770 Million Dollors with permanent financing projected to be ~ 500 Million. |
| |
| |
| |
