The country and a neighboring state have agreed to build one of the largest renewable energy parks in the region, a 1.2-billion-euro complex of solar panels and wind turbines straddling the border in the Valley Region.
The energy ministers of both countries signed the agreement in Cedar Falls on Wednesday. A joint company, Valley Crossing Energy, will be owned in equal shares by the two state power utilities and will build and operate the site.
How big is it
Plans foresee 480 megawatts of solar capacity and 64 wind turbines on the hills on both sides of the border, enough to supply about 400,000 households in an average year. A new high-voltage line will connect the park to both national grids, allowing electricity to flow in whichever direction it is needed.
When the wind blows on our side and the sun shines on theirs, we no longer have to waste it. That is the whole idea.
Lukas Ferreira, chief executive of Valley Crossing Energy
Construction of the solar section is due to start next year, with the first turbines turning in about three years. The project is expected to create around 1,500 jobs during construction and 120 permanent positions.
Who pays
The two utilities will put up 30 percent of the cost. The rest is expected to come from bank loans and a regional development fund. Investors will be offered long-term contracts to buy part of the output at fixed prices, a model that analysts say has lowered financing costs for similar projects.
“Projects like this live or die on the grid connection,” said Hana Vidmar, an energy economist in Riverton. “If the line is built on time, the numbers look solid. If it is delayed, the panels will stand idle.”
Concerns on the ground
Farmers in the Valley Region have asked for guarantees that land will be leased rather than sold and that sheep can keep grazing between the solar rows. Local environmental groups want a study of bird migration routes before the turbines are placed.
The energy ministry said public consultations will be held in six villages this fall and that the final locations of the turbines will depend on the environmental review.
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