The financing for the Tarifa plant was to have been secured last calendar year, the company originally announced. The wind farm's approximate $50 million capital cost will be financed through a Spanish corporation capitalised with approximately 80% debt and 20% equity. Fourteen-year, non-recourse, variable-rate senior debt is provided by Banco Central Hispano of Madrid. Approximately 45% of the shares will be purchased by a subsidiary of LG&E Energy Corp -- a utility holding company in Louisville, Kentucky -- and about 10% by Compania Sevillana de Electricidad, SA. It is the third time LG&E has taken an equity interest in a Kenetech plant, says company president, Gerald Alderson. Kenetech plans to secure financing commitments for subordinated debt and the balance of the equity for the Tarifa project in the second quarter of 1995. Electricity from Tarifa's 90 Kenetech Model KVS 33 turbines will be sold to Compania Sevillana de Electricidad.
The same turbines are being used in Groningen in the northern Netherlands. This project is being financed through a Dutch limited partnership with 15 year non recourse project debt from ABNAMRO Bank NV. Affiliates of Dutch utility NV Energie-Distributiemaatachapij voor Oost-en Noord-Nederland (EDON) are to buy 90% of the equity of the wind plant. EDON will buy the power under a long term contract. Kenetech expects to expand the plant to 34 MW, with the additional 9 MW being built before the November completion date. A total of 94, KVS 33 models will then have been installed.
Affiliates of Kenetech will manage and maintain both the Tarifa and Groningen plants. CNF Constructors Inc, a Kenetech Corporation subsidiary, will build the plant in Groningen and a CNF affiliate is the turn-key contractor for the Tarifa plant.