Alterra upbeat on Texas project

Canadian renewables player Alterra Power expects to close construction financing later this year with two lenders for its 202.4MW Shannon wind project in Clay County, Texas, east of Wichita Falls.

Alterra expects to own up to 50% of the project under a partnership agreement now in negotiation with a large energy infrastructure fund.

The Vancouver-based firm is in the process of documenting and executing project contracts for turbine supply and operation and maintenance, among other things; documenting a power hedge for electricity generation and negotiating terms with tax equity investors.

It has placed an additional $5.5m ($10.1m total) cash security with Oncor Electric Delivery Company, the project’s transmission provider. Oncor has begun the design and equipment procurement for an interconnection substation.

Alterra says Shannon has qualified for the US federal production tax credit.  

In February, it announced that it had completed acquisition of 100% of the project from developer Horn Wind.

Alterra earlier today said C$21.1m ($19.4m) of a a newly closed funding round would go for the project's construction financing.