On Oct. 13, the South Dakota Economic Development Board authorized up to $6.1 million in tax credits for a $750 million onshore wind project under construction in Haakon County, which will become the largest in the state.
Blattner is a contractor for the 333 MW Philip Wind Energy Center, which is expected to generate enough electricity to power the equivalent of about 121,000 homes. The company is a unit of energy construction giant Quanta Services, acquired for $2.7 billion in 2021.
Philip Wind Partners, a subsidiary of Chicago-based Invenergy, is developing the project on approximately 110 square miles north of Philip, SD, about 85 miles east of Rapid City. Plans call for up to 87 wind turbines and approximately 5.5 miles of 230 kV generator transmission line.
The developer applied for financing through the South Dakota Reinvestment Payment Program, which provides rebates on sales and use taxes paid for qualified construction and equipment costs. The program is available for new or expanded facilities with project costs over $20 million and equipment upgrades over $2 million.
According to the regulatory application of the project, the construction is expected to create about 200 jobs, with 12 other operating positions. Philip Wind Partners estimates the project will generate about $85 million in payments to property owners, $50 million in property taxes and $10 million in other state and local taxes over 30 years. It has entered into leases and easements with private owners of the facility, which is expected to operate for 30 years, according to the application.
Construction began in July. In a Sept. 30 progress report filed with the South Dakota Public Utilities Commission, Philip Wind Parters said Blattner had begun construction of mud mats and completed the project’s patio and lot plant. The work also included measures to prevent rainwater pollution, installation of silt fences and removal of topsoil.
Blattner was also performing public road improvements, construction of access roads, site grading and excavation of turbine foundations.
The project team was scheduled to begin mobilizing in October to work on the electrical collection system, including drilling conduits and trenching cables. Grading of the project’s substation and operations and maintenance building was also expected to begin during the month.
The utility commission approved a permit for the project in February.
“The applicant has demonstrated that he is entitled to this permit under the criteria set forth in state law,” commission Chairman Chris Nelson said when the permit was approved. “When built, this wind facility will be the largest in the state, strengthening our state’s electricity generation capacity.”
The project schedule calls for the installation of wind turbines to continue in 2027, followed by plant balance work. Commercial operation is planned for March 2028.
