The wind farm at Bear Creek
Assembling a wind turbine
Homegrown Energy
Most electricity is generated by burning coal and it is the dirtiest industry in the US. In Pennsylvania, several wind farms are now using wind to cleanly generate electricity. Among them is the wind farm at Bear Creek which produces 71,173 MWH of electricity per year — enough power to supply 8,900 households annually! Located 10 miles southeast of Wilkes-Barre, PA on a mountain ridge 2,000 feet above sea level, the 15 acre wind farm was developed jointly by Community Energy and the investment banking firm Babcock and Brown.
TRF has a longstanding relationship with Community Energy; TRF funded the company’s initial business plan and supported its early development. As a leading backer of the Bear Creek wind farm, TRF provided both a $5.75 million syndicated loan and a $2 million wind energy production incentive grant to the project.
TRF financing leveraged more than $33 million in additional equity for the project, bringing together a range of other investors and lenders — many of whom were first-time investors in wind energy production. TRF also provided underwriting, due diligence and legal work to launch this venture by an independent Pennsylvania wind developer.
The 12 turbines at Bear Creek generate two megawatts of power each and were supplied by Spanish manufacturer Gamesa Energia, which also selected Pennsylvania as its North American base. Gamesa plans on opening two wind turbine manufacturing centers — one in Ebensburg, PA and the other in the old Fairless Steel Works in lower Bucks County — and bringing more than 1,000 well-paying new jobs to Pennsylvania in the next five years.
Momentum is growing for more large scale, homegrown energy facilities. As Brent Alderfer, President and CEO of Community Energy notes, “Projects like this are the leading edge of a new energy future. Fuel-free wind energy offers both a clean environment and more jobs here at home. Pennsylvania has an early lead in bringing this new technology on line thanks to the innovative financing and forward thinking leadership of TRF. That leadership opens the door for more local clean power resources in the region — smart investment that benefits everyone."
One of the principles of TRF’s energy financing programs, including our wind financing, is smart subsidy. TRF recognizes that to jumpstart market forces, subsidy should be used sparingly and strategically. The level of subsidy should be the minimum necessary for leveraging private investment and reduce over time. In 2006, TRF committed financing for two additional wind farms in Allegheny Ridge and Casselman that will generate 114 MW of new wind power capacity. These newest wind farms also represent a trend in reducing the amount of wind subsidy, an indication of a growing capital market for wind energy and a more mature wind industry. TRF's first wind grants represented approximately $0.03 in subsidy for every MWH of wind energy produced annually. TRF's most recent wind grant represents only a tenth of those first subsidies - approximately $0.003 for every MWH of wind energy produced annually.