NEW ILLINOIS WIND

Developers to Build Two New Wind Projects in Illinois
December 17, 2010 (Illinois Wind Energy Association)

"Two new wind farms will be built in Illinois over the coming year thanks to a renewable energy procurement event completed…by the Illinois Power Agency (IPA). These new projects will create hundreds of jobs in construction and maintenance during the next 18 months, as well as provide valuable new landowner payments and property taxes to their host communities for years to come.

"The competitive energy procurement awarded 20-year power purchase agreements (PPAs) to several renewable energy facilities in Illinois and surrounding states, including the two new wind farms in Illinois…under Illinois' Renewable Energy Standard (RES) law, which requires the state's electric utilities to procure five percent of their power from renewables this year, and 25 percent by 2025…"

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"Under the [two new] contracts…Chicago-based Invenergy LLC commits to construct its proposed Bishop Hill II Wind Farm…while the partnership of Goldwind USA and Mainstream Renewable Power will build the Shady Oaks project…All projects will be operational and delivering power to Illinois utilities ComEd and Ameren by June 2012…

"Illinois ratepayers are protected under the new contracts. By law, the Agency must hold competitive solicitations for renewable energy and select only the lowest-cost sources. The law also states that renewables cannot cause electric rates to increase more than one-half of one percent, ensuring Illinois consumers and businesses are protected from rate spikes."

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"The IPA awarded contracts to a total of twelve wind and solar projects in Illinois and surrounding states, though most of the contracts went to existing facilities currently selling power without a PPA.

"The solicitation was the first of its type under the Illinois RES. Previous procurements have only sought renewable energy credits (or RECs) but IWEA and other renewable energy advocates urged the Agency to seek full PPAs for power and RECs in the 2010 procurement. In the current economic climate, wind developers almost always need a signed PPA in order to secure financing for a new project…IWEA strongly urges the IPA to hold more bundled procurement events in the future, as bundled PPAs are the best way to facilitate more wind development and job-creation."