The company expects to begin construction on the projects, which would be located around 100 miles west of Brownsville near Rio Grande City, in the fourth quarter of 2013. An in-service date for Los Vientos 3 plant is expected in early 2015 with the Los Vientos 4 plant slated for mid-2016.

Once operational, the output and associated renewable energy credits will be sold to Austin Energy under 25-year agreements worth $500m.

Danish wind turbine maker Vestas Wind Systems will supply 200xV110-2.0 MW turbines for the proposed projects, which will generate enough electricity to power about 120,000 homes.

Austin Energy general manager Larry Weis said that the proposed plants will help the company to achieve 35% renewable energy goal four years ahead of schedule.

"They will also help push our wind portfolio to more than 1,000 MW, which is nearly a third of our total generation," added Weis.