AES expanding Buffalo Gap wind farm

Arlington, Va.-based AES (NYSE: AES) said yesterday it would expand its Buffalo Gap wind farm in Texas, boosting capacity by 170 megawatts.

The construction, set to be complete in mid-2008, would bring Buffalo Gap's capacity up to 524 MW, making it one of the largest wind farms in the U.S.

"The Buffalo Gap 3 expansion will allow AES to continue developing renewable energy sources in West Texas, benefiting the local economy through the creation of new jobs and an increased tax base," said Ryan Pfaff, managing director of AES Wind Generation.

The company said yesterday it also signed a 7 year power purchase agreement with Houston's Direct Energy, a unit of Centrica, for all of the power produced at the expanded section of the wind farm, called Buffalo Gap 3.

Financial terms were not disclosed. Direct Energy already has a 10 year power purchase agreement for all of the electricity produced at Buffalo Gap 2.

"This expansion is consistent with AES's long-term goal to be a major wind energy producer, and is part of our plan to more than triple our wind-generated megawatts globally by 2011," said William Luraschi, president of Alternative Energy at AES.

AES said it purchased 74 Siemens 60 Hz wind turbine generators for the Buffalo Gap 3 project.

The company has more than 1,000 MW of wind projects in operation in the U.S., and another 4,000 MW in various stages of development throughout the world.