August 7, 2008

Minneapolis-based GridPath Fund investing up to $10M in wind power

by Bob Geiger Staff Writer

Supporters of renewable energy will soon be able to put their money where their mouth is: Minneapolis-based Midwest Wind Finance (MWF) is launching the “GridPath Fund,” which will raise money to build community wind-power projects, and once those projects are generating energy, return a profit to the investors.

The creation of the GridPath Fund, designed to raise as much as $10 million, follows the opening of a $5 million Wind Renewable Fund private offering, the first fund that MWF helped create.

GridPath Fund, a separate investment entity managed by MWF executives, is being introduced at a time when wind energy developers increasingly are offering private securities or stock to investors in such facilities.

In 2007, the Minnesota Legislature passed a law requiring state utilities to generate a minimum of 25 percent of electricity from renewable energy sources by the year 2025. Xcel Energy, the state’s largest utility, must generate 30 percent of its power from renewable sources under the 2007 law.

While large projects such as the 205-megawatt Fenton Wind Project in southwest Minnesota have grabbed headlines because of their high cost and lack of pollution, MWF is focusing on projects ranging from two to 50 megawatts – or projects that can be built at costs ranging from $4 million to $100 million.

“We’re optimistic about the societal and political pressure supporting renewable energy,” said Jeff Wright, a former Minneapolis advertising executive who joined MWF in 2006.