Message-ID: <199508081915.MAA00886@cdp.igc.apc.org> Date: Tue, 8 Aug 1995 12:15:54 -0700 From: Tom Gray <mailto:tomgray@IGC.APC.ORG> Subject: --Argentina Wind-Diesel Plans To: Multiple recipients of list DEVEL-L <mailto:DEVEL-L@AMERICAN.EDU>
/* Written 12:09 PM Aug 8, 1995 by tomgray in igc:energy.news */ NEW WORLD SIGNS CONTRACT FOR ARGENTINA WIND-DIESELNew World Power Corp. of Lime Rock, Conn., said February 24 that it has signed a 15-year power purchase contract with Energia Rio Negro Sociedad del Estado (ERN), an electric utility which provides service in the Argentine state of Rio Negro, to finance a series of wind-diesel generating plants.
Under the contract, New World will finance, build, and own integrated wind-diesel facilities that will provide 24-hour base load electrical service to 11 off-grid Rio Negro communities. ERN will distribute the power and will provide fuel, operations and maintenance for the plants.
Power will be sold to ERN under a two-step pricing structure, according to New World. The utility guarantees to buy at least as much power as was consumed in 1994 at a price of 28.5 cents/kWh. Any excess power will be purchased for 14 cents/kWh.
Implementation of the contract terms is subject to a 60-day performance test of a 50-kW prototype generating plant at El Cuy, one of the Rio Negro villages. New World Village Power will bring the El Cuy facility on line in May, and hopes to complete the other 10 sites by year's end.
In other news, New World said it has obtained the necessary planning approval to build a proposed 4.5-MW wind farm at Four Burrows in the English county of Cornwall, and that it has completed the purchase of an 87.5 percent interest in an Irish windfarm operator.
Construction of the Cornish wind plant, which will include 15 Danish Bonus wind turbines, is 50 percent complete and commercial operation is expected this month. The power generated will be sold to the South West Electricity Board under the 1991 Non Fossil Fuel Obligation (NFFO) program. The contract provides for a premium payment through 1998 and has a term of 25 years. New World said it "expects the project to produce approximately $2 million in annual revenue, resulting in an estimated operating profit, after debt service, exceeding $600,000 per year."
New World's acquisition of Renewable Energy Ireland cost a total of $2.3 million, $1.7 million being in cash and the balance in New World stock, the company said. Renewable Energy Ireland owns and operates a 6.45-MW wind project in Bellacorick which New World said should generate an operating profit of $400,000 annually. Power from the facility, which consists of 21 Danish Nordtank turbines expected to produce 17.5 million kWh per year, is sold to the Electricity Supply Board under a contract which extends to 2012.
For further information, contact New World Power Co., The Farmhouse, 558 Lime Rock Road, Lime Rock, CT 06039, USA, phone (203) 435-4000, fax (203) 435-0505.
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