innogy paves the way for first US onshore wind project
Final investment decision for 242MW Scioto Ridge wind farm
Turbine supply contract signed with Siemens Gamesa
Full construction start planned for Q2 2019
Energy company innogy SE paves the way for its first US onshore wind project: At the end of November 2018, innogy took the final investment decision for the construction of the Scioto Ridge wind farm, a 242MW project in Hardin and Logan Counties, Ohio. In preparation for construction, the contract for the supply of wind turbines has now been signed. Siemens Gamesa Renewable Energy will supply 72 wind turbines: 63 x SG 3.4-132 and 9 x SG 2.6-114. The order includes a 10-year service and maintenance agreement with Siemens Gamesa. The total investment in the project will be more than $300 million.
In July 2018, innogy acquired the EverPower Wind Holdings’ US onshore wind development business from UK private equity investor Terra Firma Capital Partners. This acquisition included a development pipeline of more than 2,000 MW of wind projects.
Only half a year after the successful transaction we have now started executing the first project. Scioto Ridge represents a large contribution to the achievement of Ohio’s Renewables targets. Once fully operational, our first US onshore wind farm will be capable of supplying the equivalent of more than 60,000 Ohio homes annually with renewable electricity.
The electricity production of the Scioto Ridge project will be sold in the wholesale market. For a significant part of the electricity production, innogy also secures the electricity price through a 13-year PPA (Power Purchase Agreement). The project will reach commercial operation in Q4 2020 and qualify for the full federal Production Tax Credit.
The project has been in development for a long time and the host communities and surrounding region will soon receive the benefits we have been predicting for years. I am pleased that preliminary construction activities are now underway at the site. Full construction of the wind farm is on schedule to begin in the second quarter of 2019. We plan to commence operations of the entire 72 turbine facility in the fourth quarter of 2020.
In parallel, innogy continues to drive the expansion of its US onshore wind business forward: The company plans to meet the final investment decision for the New York projects Cassadaga (~126MW) and Baron Winds (~240MW) in 2019 and place them in service also in the fourth quarter of 2020.
innogy will leverage its considerable experience in developing, designing, financing, constructing and operating renewables assets both independently, and together with project partners and investors to support its valuable growth strategy. In addition to onshore wind, offshore wind, solar and e-mobility are also part of innogy’s scope in the US.