Vestas, Alliant Energy enter $817 million wind deal

Madison, Wis.-based Alliant Energy Corporate Services, Inc., a wholly-owned subsidiary of Alliant Energy (NYSE: LNT) used today's WINDPOWER conference to announce it had entered into a master supply agreement (MSA) with Denmark's Vestas Wind Systems.

The agreement provides Alliant Energy's utility subsidiaries, Interstate Power and Light Company and Wisconsin Power and Light Company, with a total of 303 units of Vestas' V82 1.65 megawatt wind turbines to support Alliant Energy's utility-owned wind generation plan.

According to the agreement, the turbines will have a total installed capacity of 500 megawatts and are to be delivered in three groups.

Under the terms of the MSA, Vestas will begin delivery of the initial group of turbines in 2009, with delivery for the final two groups of turbines beginning in 2010.

The total purchase price for the wind turbine equipment is expected to be approximately $817 million, and according to the two companies, will be subject to adjustments.

Alliant, a Midwest energy-services provider, says it expects the wind turbine equipment to meet its utilities-owned wind generation plan, including IPL's Whispering Willow Wind Farm East project, a 200 megawatt site located in Franklin County, Iowa, and also support a portion of other anticipated utility-owned wind generation projects.

"Vestas will play an important role in our company's next step in expanding its renewable energy supply portfolio,” said Kim Zuhlke, Alliant Energy Vice President - New Energy Resources. “Given our company's aggressive wind generation expansion plans, we believe it is important that we procure the infrastructure necessary to complete the generation build-out on-time and at a reasonable cost to customers."

Earlier this year, Vestas also agreed to sell 109 turbines to a North American unit of E.ON (OTC: EONGY), a German energy giant. Financial details of the deal were not disclosed (see Vestas gets turbine order from E.ON).

Also announced last week, Vestas is expected to install more turbines for Calgary, Alberta-based TransAlta's (NYSE: TAC) expansion of its Summerview wind farm, which is expected to be operational by first quarter 2010 (see TransAlta to add 66MW to Alberta wind farm ).