In an important “model of collaboration” between the U.S. and Mexico,
the first ever cross-border wind farm has been officially inaugurated
in Tecate, Baja California. Customers of San Diego Gas & Electric
(SDG&E) will be the beneficiaries of a pioneering partnership that
has been in the making for nearly two years.
The wind farm, named Energía Sierra Juárez 1, went into official
operation in June. It has an installed generation capacity of 155 MW and
is expected to generate the equivalent of the yearly consumption of
some 70,000 homes. The total footprint of the site occupies 13,100 acres
and is comprised of 47 wind turbines and a transboundary transmission
line nearly five miles long.
Generated electricity from the wind farm is transmitted to SDG&E
via a purchase arrangement that will also enable the power company to
receive renewable energy credits pursuant to California’s renewables
portfolio standard. The project, which cost about $300 million, included the involvement
of numerous sponsor organizations, including IENova, SDG&E, the
Border Environment Cooperation Commission, and the North American
Development Bank (NADB).
Although there are many other U.S.-Mexico energy collaborations in
existence – mainly in the arena of natural gas pipelines – Energía
Sierra Juárez 1 is unique for being the first cross-border renewable
energy project. Juan Antonio Flores, associate director of public
affairs for NADB, called it a “breakthrough” that will likely lead to
others similar projects.
“This project reinforces the collaboration between both countries
within the context of the energy reform in Mexico,” Flores said. Construction of the wind farm, which began in 2013, employed a work
force in excess of 600. The vast majority of those employed comprised of
professionals residing in the communities surrounding Tecate. Operation
of the wind power plant has resulted in the creation of 20 permanent
jobs, which have also been filled by locals.
According to Flores, completion of the project was a delicate
balancing act that required strict adherence to U.S. and Mexico
regulatory requirements. It involved securing a presidential permit from
the U.S. Department of Energy for the installation of the cross-border
transmission line, in addition to an environmental impact permit from
the Mexican EPA, SEMARNAT.
Flores said the project’s feasibility also hinged greatly on
“in-depth due diligence from the lending participants to make sure that
all legal and technical components of the project were in place.” The
financing was made more challenging due to the fact that it was a
“syndicated transaction” involving two Japanese banks, one German bank,
the NADB, and Mexican development bank NAFIN.
The Tecate wind farm is a first for renewable energy, but likely not
the last. Hinting at the potential for Energía Sierra Juárez 1 to
inspire further U.S.-Mexico renewable energy collaborations, Flores
pointed to the Sierra Juarez Mountain Range as a possible resource for
future wind energy project development. “IENova continues to work with
the local Ejidos (agricultural lands) to secure land rights for the
development of future projects,” Flores said. According to an Aug. 19 NADB statement, the electricity generated by
the wind farm will result in the yearly displacement of more than
125,000 metric tons of CO2 and nearly 190 metric tons of nitrogen
oxides.
http://www.renewableenergyworld.com/articles/2015/08/wind-power-is-breaking-down-international-border-barriers.html
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