Kingfisher Wind Project

Profile: 149 Vestas V100/2.00 MW turbines | Total capacity: 298 MW | Owner: First Reserve | Developer: Apex Wind Energy

Problem: The young Southwest Power Pool (SPP) faced growing demand and capacity in 2013.  As a result, Kingfisher Wind needed a novel finance model to adapt and continue to produce revenue.

Solution: Cycle’s owner, Peter Blood, developed a highly profitable structured (virtual) PPA for the project. Approached Morgan Stanley Commodities Group in search of an appropriate portfolio and capabilities to meet the needs of both the project and the customer. He presented his vision for representatives of MSCG and Apex on a whiteboard in MSCG’s Vancouver, BC western power trading and origination office.

Results: S&P Global Platts awarded Peter, Apex Energy, and Morgan Stanley Commodities Group 2015 Financial Deal of the Year. Because of that unique hedge strategy, Apex and Morgan Stanley created physical and financial support for Kingfisher Wind as a bankable project. The structured or virtual PPA is a highly profitable hedge. Apex Clean Energy, First Reserve, Gulf Power Company, and Morgan Stanley Commodities Group partnered for the virtual delivery hedge. Physical transmission service from Gulf Power supported a portion of the project’s capacity. The SPP power market proxy used the annual wind production shape as liquidated. The hedge then mirrored that shape with deliveries of power to Gulf Power’s load within the Southern Company load service territory.