USDA Grants Loan Guarantee to South Dakota Wind Project

Agriculture Secretary Tom Vilsack today announced the selection of Basin Electric Power Cooperative to receive a loan guarantee to construct more than 100 wind turbines to produce 151.5 MW of electricity. The loan guarantee will provide financing for engineering, procurement, construction, and commissioning of the PrairieWinds wind farm energy project in central South Dakota.

The $204 million loan guarantee will be funded by USDA Rural Development’s Rural Utilities Service and will be for 60% of the total $340 million project costs. Funding is contingent upon meeting the conditions of the guaranteed loan agreement.

When installed, the turbines will join the cooperative’s other electric generation projects to meet the needs of 2.8 million customers served by 135 distribution systems in nine states. When this project is completed, Basin Electric will have more than 700 MW of wind generation in its portfolio.

In 2001, Basin Electric developed its first wind project—two turbines just north of Chamberlain S.D. They were followed by another two turbines south of Minot, N.D. Since then Basin Electric has developed more than 450 MW of power in the Dakotas, including several projects with NextEra Energy Resources. In 2009, Basin Electric subsidiary PrairieWinds ND 1 Inc. completed the largest wind project in North Dakota. That project has a capacity of 120 MW.
 
The South Dakota project is a model of public and private investment partnership. The Wind Partners announced in late September that they had raised the $16.8 million required from South Dakota investors for their part of the project. Thirty-two separate rural land owners participated by providing lease easements. 

PrairieWinds will construct the turbines for the Wind Partners and operate them. Through PrairieWinds, Basin Electric will purchase the electricity produced.

Source: USDA