Houston-based EDP Renewables North America (EDPR) has reached an agreement with Indiana Michigan Power (I&M) to construct a $350-million to $400-million wind farm containing up to 100 turbines in Randolph County, Ind., about 25 miles east of Muncie. Under the agreement, the proposed Headwaters Wind Farm will supply I&M with 200MW of power over a period of 20 years.

I&M indicated the arrangement will help it fulfill a 2007 agreement between parent company AEP and the U.S. Environmental Protection Agency to increase its use of renewable energy. The agreement settled litigation over allegations that 16 AEP coal-fueled power plants violated the Clean Air Act in Indiana, Kentucky, Ohio, Virginia and West Virginia. AEP also paid a civil penalty of $15 million.

“Our agreement with EDPR is an important step in our continuing efforts to diversify our generation portfolio, which includes wind, hydro, nuclear and coal,” I&M President Paul Chodak III told reporters.

EDPR, a subsidiary of Spanish company EDP Renovaveis, the world's third-largest wind energy producer, plans to break ground on the project in spring 2014 and conclude construction by year's end. EDPR indicated the project will create 150 jobs during construction and more than 20 permanent jobs once construction is completed.

According to plans, Headwaters will supply power to more than 55,000 homes on an annual basis. The project also will boost I&M's total wind power portfolio to 450 MW.

EDPR currently owns and operates nearly 30 wind farms throughout the U.S., including an installation in White County, Ind.