European mega-financier, Fortis, has inked a deal to buy 1.1 million megawatt hours of power for the next 10 years from Enel North America. The estimated $80-million deal is seen as a hedge against the price of electricity from natural gas.
This article posted on the CNNMoney.com web site says the power will come the the Snyder Wind Farm in Texas, 63-megawatt project consisting of 21 wind turbines:
Based on an industry estimate of $50 to $80 per megawatt hour, the transaction carries a price of up to $80 million, marking the latest in a big boom in wind projects around the country.
“Wind energy is a rapidly growing generation resource for the U.S. and we’ll continue to pursue hedging transactions not only in renewable power, but in conventional power as well,” said David Duran, managing director at Fortis Merchant & Private Banking, a unit of the Brussels-based financial conglomerate.
Fortis will market the wind-power hedge to financial players, hedge funds, power companies and other energy-investment market participants.
The article goes on to say that the American Wind Energy Association estimates that installation and production of wind generators is up about 25 percent this year alone.