New York Power Authority President and CEO Richard Kessel this week proposed a billion-dollar wind farm in either Lake Erie or Lake Ontario. The plan includes incentives to build and assemble the wind turbines locally, with the idea that the area could become a manufacturing center for wind power-related technology as the alternative energy industry grows.

NYPA President Richard KesselKessel has met with wind farm developers about the project, and NYPA issued a formal request this week for indications of interest. The agency will also work closely with the city of Buffalo, the University of Buffalo and environmental groups. A request for proposals will likely follow later this year. The total cost of the project is estimated between $700 million and $1 billion and the proposed 40-turbine farm (generating approximately 120 megawatts) would take approximately five years to construct. 

NYPA would sign a power purchase agreement for 20 years, allowing the winning developer to obtain financing to build the wind farm based on guaranteed revenue streams. In addition, there is the possibility that NYPA could enter into a joint venture with a developer, utilizing its own cash or ability to borrow. 

Kessel, who championed a failed bid to build an offshore wind farm in Long Island, said "there's great potential in wind. We would have loved to have put one in Long Island, but we can't wait forever and they want this in western Buffalo."