Pickens Plan hit by transmission issues
Pickens, founder of hedge fund BP Capital, told the Dallas Morning News this week that he would postpone further work on the 4,000 megawatt (MW) project in Pampa, Texas. In an email statement to Energy Risk, Pickens blamed both the current economic climate, as well as transmission issues, for the decision to stall the project. But he insisted he remains committed to developing wind energy generation projects in the US and possibly Canada.
"The capital markets have dealt us all a setback and I'm less aggressive with the Panhandle project than I have been," he said. "I'm committed to 667 wind turbines and I am going to find projects for them. I had hoped that Pampa would be the starting point, but transmission issues and the problem with the capital markets make that unfeasible at this point. I expect to continue development of the Pampa project, but not at the pace that I originally expected."
The Pickens Plan was originally launched in July 2008, when he signed up 3,000 acres of leasing in Pampa, which is located in the Texas Panhandle. Pickens planned to install enough wind turbines on the land to generate 4,000MW of power, the equivalent of two nuclear plants, making it the largest wind farm in the world. This formed part of his attempts to highlight the United State's dependence on foreign oil and convince the US Government to boost energy independence by generating up to 22% of the nation's energy supply through wind power.
More on Electricity
Next-gen PPA contracts reshaping European power markets
As energy market participants seek new ways of capturing value from volatility, new skills are required to structure and price increasingly complex power purchase agreements
Ercot reforms ace winter but Iran conflict and summer pose bigger test
Ercot’s RTC+B reform passes Storm Fern test – now market participants brace for extended Middle East conflict and high-load summer months
Interest in battery and flexibility soars in European energy markets
Energy traders are structuring bespoke contracts around Bess and flexibility that facilitate new ways of managing and sharing risk in this nascent market
Axpo interview: the rise of flexibility contracts in European power
Axpo’s Domenico Franceschino talks to Energy Risk about flexibility contracts, battery optimisation and the role of risk management in valuing these bespoke products
US power markets grapple with surging AI demand
Through rising demand and increased market participation, technology giants are transforming US power markets
CRO interview: Shawnie McBride
NRG’s chief risk officer Shawnie McBride discusses the challenges of increasingly interconnected risks, fostering a risk culture and her most useful working habits
Energy Risk Europe Leaders’ Network: geopolitical risk
Energy Risk’s European Leaders’ Network had its first meeting in November to discuss the risks posed to energy firms by recent geopolitical developments
Energy Risk US Leaders’ Network: tackling volatility
Energy Risk’s inaugural US Leaders’ Network convened in Houston in October to discuss risk management challenges caused by geopolitical upheaval, policy uncertainty and volatility
