Enel Green Power North America, a subsidiary of the Italian energy company, has started the construction of the 450MW High Lonesome wind farm in Upton and Crockett Counties, in Texas, US.

Enel

Image: Enel begins construction of wind farm in Texas. Photo: Courtesy of Karsten Würth (@inf1783)/Unsplash.

Once completed, the High Lonesome wind farm is expected to be the largest wind farm in the company’s global renewables portfolio.

A 295MW portion of electricity generated from the project will be hedged through a Proxy Revenue Swap (PRS), a risk management strategy aimed at minimising price and weather-related risks.

The Italian energy company has signed the PRS with Allianz Global Corporate & Specialty’s Alternative Risk Transfer unit (Allianz) and Nephila Climate, a provider of weather and climate risk management products.

This PRS is a financial derivative agreement that can help in generating stable revenues for the project regardless of price fluctuations and weather-driven intermittency.

Allianz Risk Transfer managing director Karsten Berlage said: “The construction of High Lonesome is a strong testament to the popularity and success of innovative renewable energy protections.

“The majority of today’s stakeholders champion the continued growth of renewables and that is why Allianz is committed to flexible strategies such as the PRS that mitigate those risks – long term.”

For the High Lonesome wind farm, Enel will be investing nearly $600m and is part of the investment included in the company’s 2019-2021 strategic plan. The company is utilizing its own resources for the financing of the wind project, which is expected to see operations begin by the end of this year.

Once operational, the wind farm could generate nearly 1.7TWh of clean electricity annually, while avoiding more than 1.1 million tons of CO2 emissions per year.

Enel Green Power head Antonio Cammisecra said: “The start of construction of our largest wind project to-date represents a major commitment to growing our business in the US and specifically in Texas.

“The project underscores our ability to work with partners to tailor energy solutions to fit their needs and continue to manage and deliver to our customers the complex deals necessary in today’s evolving energy market.

“We look forward to continuing to serve as the partner of choice, dedicated to delivering a sustainable energy future.”