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(Reuters) - Sempra Energy and BP Plc will spend $1 billion to build new wind power farms this year in Pennsylvania and Kansas with a total output capacity of 560 megawatts, the companies said on Tuesday.
Wind power developers are racing to build new plants ahead of the expected expiration of a tax credit at the end of 2012, an incentive the industry is seeking to have extended to help make the renewable power source competitive against fossil fuel power stations.
The wind farms, to be owned by BP Wind Energy and Sempra U.S. Gas and Power, will be the biggest in each state and will expand the partnership between the two companies which together own wind farms in Indiana and Colorado.
The Mehoopany Wind farm in Wyoming County, Pennsylvania, will have a capacity of 141 MW and has a contract to sell the power to Old Dominion Electric Cooperative and Southern Maryland Electric Cooperative. One megawatt of electricity capacity is enough to supply about 1,000 homes.
The Flat Ridge 2 Wind farm will be located near Wichita, Kansas, have a capacity of 419 MW and deliver power to Associated Electric Cooperative and Southwestern Electric Power Co. It also expects to sign one additional customer, the companies said.
Both plants will use wind turbines built by General Electric Co.
Reporting By Matt Daily