Western Wind Turns Down US $228 Million Offer for Wind Project

Western Wind Energy Corporation has announced that it is now engaged in negotiations, reviewing new offers and is in discussions with major U.S. institutions regarding self-financing initiatives whereby its 120-megawatt (MW) Windstar Project will directly produce US $1.7 billion in revenue over 30 years.

Although Western Wind was offered US $228 million for all development rights to the Windstar Project including royalty payments pursuant to a land lease, over a 30-year period, accorrding to Western Wind, given the growing market for renewable energy, developing its own projects will provide a greater return.

The new market price referent (MPR) for 2008 is anticipated to be as high as US $115 per megawatt-hour (MWh) for renewable projects. This price in addition to the current Production Tax Credit (PTC) of US $20 per MWh which offers wind producers, such as Western Wind, the ability to collect an estimated US $135 per MWh in total compensation under long-term contracts.

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