EDF Energies Nouvelles, a company engaged in green electricity production, has said that its US subsidiary EnXco, and US utility Indianapolis Power & Light (IPL) have reached an agreement to proceed with the 201MW Lakefield Wind Project.

According to EDF, the Lakefield Project, to be built in southwestern Minnesota, is the second PPA between the two companies.

EnXco and IPL have signed the the original Power Purchase Agreement (PPA) for the Lakefield project in June 2009, while the Indiana Utility Regulatory Commision (IURC) approved the PPA in January 2010.

In March, IPL terminated unilaterally the PPA, following which EnXco initiated arbitration against IPL. Subsequently IPL and EnXco addressed IPL’s concerns and resumed the PPA as originally agreed.

This allows the project to continue as initially planned with a revised project schedule anticipating commercial operation in late Q3 2011.

The Hoosier Wind Project in Indiana is in operation and provides IPL with approximately 2% of the electricity sold to its retail customers. When Lakefield is operational, IPL anticipates wind energy will provide power for about 7% of its utility sales.