United States

United States

Shell and University of California sign PPAs with 3.5GW SunZia wind farm

Oil major Shell and the University of California have signed a power purchase agreements with Pattern Energy for electricity generated by its 3.5GW SunZia wind farm currently being developed in New Mexico.

The transmission project will transport wind-generated electricity from central New Mexico to Arizona and California (pic credit: Dukas/Universal Images Group via Getty Images)
The transmission project will transport wind-generated electricity from central New Mexico to Arizona and California (pic credit: Dukas/Universal Images Group via Getty Images)

Construction on SunZia Wind is due to start this year and the project – which is to be built in New Mexico’s Torrance, Lincoln and San Miguel counties – is expected to be the largest in the US when it is completed in 2026.

Pattern will link the wind farm to energy markets in the western US through the planned SunZia Transmission project; an 880km, 525kV high-voltage direct current (HVDC) transmission line stretching between New Mexico and Arizona.

The transmission project is designed to channel electricity from wind energy generated in New Mexico to Arizona and California.

Pattern, which acquired SunZia wind and transmission from SouthWestern Power Group in 2022, called it the largest renewable energy infrastructure project in US history, with a total investment of more than $8 billion.

The energy company claims SunZia wind and SunZia transmission will generate over $20.5 billion in “economic benefit”, including an estimated $1.3 billion it said would go to “governments, communities and schools” through various tax and benefit payments.

IRA backdrop

The US is experiencing a surge in planned new wind energy projects following the introduction of the Inflation Reduction Act (IRA).

The IRA will provide around $369 billion in federal spending to encourage the growth of the renewable energy industry in the US, largely through incentives such as manufacturing tax credits.

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in