Wind

EDP Renewables to invest $4bn in US through 2012

EDP Renewables to invest $4bn in US through 2012

EDP Renewables plans to invest $4bn to build new wind farms in the US through 2012, a move company officials say is a direct response to the federal government's new attitude toward clean energy development under President Barack Obama.

"EDP Renewables is serious about partnering with the United States for a number of reasons, but most of all because of the leadership we have seen from the federal government," says chief executive Antonio Mexia.

"The Obama Administration and Congress signaled that they are serious about fostering production of renewable energy and that has assured us that America is the right place to invest," he adds.

In the US, EDP has a presence in 21 states and operates more than 2,500 megawatts of wind energy capacity. It has developed about 3,400MW of wind projects.

The company’s Horizon Wind Energy affiliate, based in Houston, now employs nearly 300 people compared to 60 three years ago.

Horizon expects to set a record this year with 800MW of wind power already installed or under construction, a $1.5bn investment. It claims to be the third largest wind energy producer in the US.

Mexia says the company’s 2009 performance is largely due to the federal 1603 Programme that provides a regulatory framework to accelerate construction of new renewable energy capacity.

The 1603 Programme gives renewable energy producers the chance to offset new project costs with a 30% grant. Companies that take advantage of the program agree to give up certain tax credits that they would have been eligible for in the future.

The direct payment has spurred development by companies that did not have a federal tax liability and encouraged immediate re-investment of renewable energy profits.

In a statement, Treasury Secretary Tim Geithner praised Horizon’s decision to take part in the 1603 programme administered by the US Departments of Energy and Treasury. He called it “an example of a true federal partnership with the private sector.”

"There is no doubt that the right program was put into place at the right time,” says Mexia. “We are bringing new construction and operation permanent jobs to towns and cities of all sizes and seeing the economic activity that comes with those jobs. We are installing equipment manufactured in the United States and we are also giving people new, clean energy choices."

He adds: "EDP is committed to reinvesting all funding received from the 1603 Program into new renewable energy projects and jobs in the United States.”

Mexia says the US needs to enact an aggressive renewable electricity standard that will ensure EDP and other companies can make longer term investments in the wind sector.

EDP is owned by Portugal's EDP Renovaveis SA.

Richard A. Kessler

Published: Friday, November 20 2009

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