Providing Capital And Technology, GE Advances Partnership With Enel Green Power To Build One Of Minnesota’s Largest Wind Farms

Expanding its partnership with global renewable energy company Enel Green Power, GE (NYSE: GE) unit GE Energy Financial Services has committed approximately $156 million in common equity for one of Minnesota’s largest wind farms, using GE turbines.

The GE unit now owns 51 percent of the 200-megawatt Prairie Rose wind project under construction in southern Minnesota. Enel Green Power North America, a subsidiary of Enel Green Power, committed approximately $149 million for a 49 percent ownership stake and serves as project manager. In addition to capital, GE signed an agreement last year with Enel Green Power North America to supply 119 of GE’s 1.68-megawatt wind turbines for the project.

The GE unit and Enel Green Power North America also raised approximately $190 million in tax equity to be provided by a syndicate led by J. P. Morgan, which includes Wells Fargo Wind Holdings LLC and Metropolitan Life Insurance Company. The tax equity will be funded at project completion and will reduce both GE Energy Financial Services’ and Enel Green Power North America’s ownership stakes in the wind farm.

“This transaction showcases GE’s ability to provide both world-class technology and flexible financing structures for our customers and advances our long-term partnership with Enel Green Power, an established renewable energy leader,” said Kevin Walsh, Managing Director of Power and Renewable Energy at GE Energy Financial Services.

The project, which is expected to cost approximately $305 million, is located near Hardwick, northwest of Luverne. Construction, managed by Minneapolis-based Mortenson Construction, is expected to be completed later this year. The wind farm will supply all of its power to Northern States Power Company, a subsidiary of Xcel Energy, under a 20-year contract. Enel Green Power North America will have the option to purchase up to an additional 26 percent ownership stake from the GE unit later in 2012 and in 2013.

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