Duke Energy Finances Wind Project - Analyst Blog

Duke Energy Corporation (DUK) has made available $231 million finance for its Top of the World wind power project in Wyoming. The non-recourse credit facilities at its disposal consist of an 18-year term loan worth $193 million, and nearly $38 million in letters of credit.

Located near Casper, Wyoming, the wind farm began operating in October 2010 and has a generation capacity of 200-megawatt (MW). Duke Energy Generation Services (DEGS), a Duke Energy Commercial Businesses unit, develops and owns the renewable power assets.

The Top of the World wind farm has roughly 66 General Electric wind turbines and 44 Siemens turbines, with capacities of 1.5 MW and 2.3 MW each, respectively. Duke Energy sells the entire renewable energy generated at the plant to PacifiCorp under a 20-year power purchase agreement.

Duke Energy has always been an attractive partner for banks given its strong financial position and track record of developing power generation projects. Over the last three years, the company has invested in excess of $1.5 billion to grow its commercial wind power business.

Duke Energy anticipates the financing for the of the World wind-power project to open up opportunities for additional investments in renewable energy.

Charlotte, North Carolina-based Duke Energy Corp. is a diversified energy company with a portfolio of domestic and international, natural gas and electric, regulated and unregulated businesses. The company supplies, delivers, and processes energy for customers in North America and selected international markets. Duke Energy owns and operates 986 megawatts of commercial wind power generation in nine U.S. sites, including four wind farms in Wyoming.

Duke Energy currently has a short term Zacks #3 Rank (Hold), which translates into our long-term Neutral recommendation for the stock. This is consistent with the ranks of its closest peers – American Electric Power Co. Inc. (AEP) and Constellation Energy Group Inc. (CEG).

 
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