General Electric Co. (GE) won a $1.4 billion contract to supply Caithness Energy LLC with large turbines for a massive wind farm, set to be the world's largest once it's up and running.
General Electric Co. (GE) won a $1.4 billion contract to supply
Caithness Energy LLC with large turbines for a massive wind farm, set to be the
world's largest once it's up and running.
The deal may ease some of GE's worries about its placement in the wind-turbine
industry's future growth, which could slow dramatically unless the federal
government requires more electricity come from renewable energy. Vic Abate,
GE's vice president in charge of its wind-turbine business, had previously said
orders for 2012 and beyond had been "extremely tight."
In the third quarter, GE's industrial businesses, which include its energy arm,
showed signs of shaking off the recession's grip, posting a combined 4% rise in
profit.
GE will supply 338 large, 2.5-megawatt turbines in 2011 and 2012 and provide 10
years of operational service and maintenance on the Shepherds Flat wind-power
project in
Oregon
.
Shepherds Flat will be first North American wind farm to have GE's 2.5xl wind
turbine, already installed in
Europe
and
Asia
. The
company said the 2.5-megawatt version "provides customers with greater
efficiency, reliability and grid connection capabilities."
Caithness
's
order is the largest yet for the 2.5xl.
With building slated to start next year and finish in 2012, the project will
provide enough power for roughly 235,000 households and avert the emission of
1.5 million tons in greenhouse gases such production from fossil-fuel power
generation would create. With a $2 billion price tag and an expected
845-megawatt capacity, it would eclipse the Roscoe wind farm in
Texas
,
currently the biggest one in the world with 781.5 megawatts in capacity.
Under three 20-year power purchase agreements, the Shepherds Flat wind farm
will supply power to Southern California Edison, part of Edison International
(EIX). It will represent more than 10% of Southern California Edison's overall
renewable energy portfolio.
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