Coquitlam-based Western Wind Energy Corp. (TSX:WND) has been offered $228 million for the development rights to its Windstar energy project, but believes it can get a better return if it develops Windstar itself.
The 120-megawatt project, located roughly 160-kilometres northeast of Los Angeles, is projected to generate $1.7 billion over a 30-year period.
California energy prices are tied to the price of oil and gas, so revenue could rise as the price of renewable energy could go as high as $115 per megawatt hour this year. A $20 per megawatt production tax credit could boost the price to $135 per megawatt hour.
Western has a current wind energy capacity of 34.5 megawatts. The company has more than 145 megawatts of expansion power sales agreements with projects in the late stages of development.
Western Wind's share price range during the past week: between $2.79 and $3.39; 52-week high: $3.16; 52-week low: $0.76.