The AES Corporation (NYSE:AES) today announced the start of commercial operation of its 233 MW Buffalo Gap 2 wind farm expansion near Abilene, Texas. This expansion makes the Buffalo Gap wind farm the third largest in the state with a total wind power capacity of 354 MW—enough energy to power approximately 100,000 homes.
Under a 10-year power purchase agreement, AES will sell all of the electricity Buffalo Gap 2 produces to Texas retail electric provider Direct Energy at a fixed price. Financial terms of the project were not disclosed.
“AES is continuing to expand its wind generation business in the United States, focusing aggressively on markets like Texas that have high wind resources and a favorable regulatory market," said Ned Hall, President, AES Renewable Generation.
“Texas currently has the largest amount of wind power in operation in the United States, and AES is proud that Buffalo Gap is now the third largest wind farm in Texas,” said Ryan Pfaff, Managing Director, AES Wind Generation. “AES looks forward to continuing its further expansion in the state.”
The United States is on track to install over 3,000 MW of wind power capacity in 2007. Texas is likely to account for about two-thirds of the new installations, due largely to its renewables portfolio standard and other incentives for renewable generation, according to the American Wind Energy Association (AWEA).
“Wind generation is a key component of AES’s broader alternative energy business. AES sees tremendous opportunities in wind generation and recently announced plans to more than triple our wind-generated megawatts by 2011,” said William Luraschi, AES Executive Vice President and President of Alterative Energy. “As one of the cleanest, lowest-cost renewables, wind generation will be an area of continuing focus and priority for AES.” AES’s Alternative Energy business comprises the company’s activities in wind generation, liquefied natural gas, greenhouse gas emissions offset projects and other technologies.
AES entered the wind generation business in 2004. Today, AES has more than 1,000 MW of wind projects in operation in the United States and another 3,000 MW of wind projects in various stages of development throughout the world. The company’s wind development projects are located primarily in the United States and Europe. AES has plans to expand its wind business to other countries where it does business, including countries in Asia and Latin America.
About AES
AES is one of the world’s largest global power companies, with 2006 revenues of $11.6 billion. With operations in 28 countries on five continents, AES’s generation and distribution facilities have the capacity to serve 100 million people worldwide. Our 13 utilities amass annual sales of over 73,000 GWh and our 117 generation facilities have the capacity to generate approximately 40,000 megawatts. Our global workforce of 30,000 people is committed to operational excellence and meeting the world’s growing power needs. To learn more about AES, please visit www.aes.com or contact AES media relations at media@aes.com.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’s current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience.
Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES’s filings with the Securities and Exchange Commission, including, but not limited to, the risks discussed under Item 1A “Risk Factors” in AES’s 2006 Annual Report on Form 10-K. Readers are encouraged to read AES’s filings to learn more about the risk factors associated with AES’s business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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