PR – Portland General Electric Company (PGE) (NYSE:POR) and Siemens Power Generation, Inc., part of the global Siemens Energy Sector, today announced they have executed agreements for PGE to buy 141 turbines to complete construction of its 25,000-acre Biglow Canyon Wind Farm in Sherman County, Ore.
“Biglow Canyon Wind Farm is a major investment in renewable energy and resource diversity for PGE customers,” said Jim Lobdell, PGE’s vice president for power operations and resource strategy. “Siemens has the right product and know-how to help ensure the project will be completed efficiently and perform as promised.”
Siemens, one of the leading suppliers of components and systems to companies in the energy and electricity industry, has installed approximately 7,000 turbines at some of the world’s largest wind farms. “This is one of the largest single wind turbine orders we’ve received in the world’s largest wind energy market,” stated Andreas Nauen, head of Siemens’ wind business. “Siemens is pleased to have been chosen by PGE to help meet the growing demand for clean, wind-generated electricity.”
PGE is building the Biglow Canyon project in three phases. The first phase, with 76 turbines, became fully operational in December of 2007. PGE expects phase two’s 65 turbines to be installed in 2009, and phase three’s 76 turbines to be installed in 2010.
When complete, the Biglow Canyon Wind Farm is expected to have an installed capacity of nearly 450 MW, enough to supply the electricity needs of more than 100,000 homes.
Siemens will deliver, install and commission the 141 SWT-2.3-93 wind turbines with a capacity of 2.3 MW each, totaling 324.3 MW, under a five-year warranty, and will provide service and maintenance pursuant to a separate service and maintenance agreement.
PGE expects total project costs for phases two and three of the Biglow Canyon project to remain within the previously-disclosed range of $700 million to $800 million, including allowance for funds used during construction (AFDC).
The Biglow Canyon facility will help PGE with its plans to satisfy Oregon’s renewable energy standard, which requires the utility to meet 15 percent of its load with renewable resources by 2015 and 25 percent by 2025. About 3.4 percent of PGE’s energy mix currently comes from wind farms – Biglow Canyon phase one plus power PGE purchases on contract from the Klondike II and Vansycle Ridge Wind Farms.
PGE is working with the Oregon Public Utility Commission to complete a request-for-proposals, to be issued in the next few weeks, seeking an additional 218 average MW of renewable resources. The company hopes to have a variety of projects to evaluate such as wind, solar, geothermal and biomass.
“Wind and most other renewable energy options available today are variable resources that have great potential but need to be backed up with conventional capacity,” PGE’s Lobdell said. “PGE is working to combine these resources to reduce its environmental footprint while providing customers with reliable, reasonably priced electricity.”
The Biglow Canyon project was developed by Orion Energy LLC and is owned by PGE. In addition to phase one, PGE will manage the construction, own, and operate phases two and three of the wind farm.