The purchase is subject to certain conditions, and includes an option to acquire the second phase of the project.
Construction is expected to commence on the 200 MW first phase later this year in order to qualify it for the Production Tax Credit (PTC).
The project, encompassing approximately 15,000 acres in Deaf Smith County southeast of the town of Hereford, will take advantage of the CREZ (Competitive Renewable Energy Zone) transmission lines connecting the wind generating capacity of the Texas Panhandle to high electricity demand areas in the state.
EDF Renewable Energy is in advanced negotiations to secure a long-term, fixed-price hedge agreement for the expected energy production of the first phase of the project.
"The Production Tax Credit extension in early 2013, along with the CREZ transmission build-out, creates a compelling opportunity for EDF Renewable Energy to strengthen our presence in the wind-rich Texas Panhandle," said Ryan Pfaff, Executive Vice President of EDF Renewable Energy.
He added, "We applaud the Public Utility Commission of Texas for their vision in implementing the CREZ transmission project, which will provide access-to-market for low-cost, clean renewable energy, and in turn, spur economic development at the local level."
Commenting on the announcement, Declan Flanagan, CEO of Lincoln Renewable Energy said, "We are delighted to be working with a partner of the caliber of EDF Renewable Energy on the Hereford wind project, and look forward to the project quickly moving into construction."
Morgan Stanley acted as advisor to Lincoln Renewable Energy on the transaction.
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