Buffett Places Record Breaking Wind Turbine Order with Siemans

MidAmerican Energy Holdings Co., subsidiary of Warren Buffett’s Berkshire Hathaway, placed the largest onshore wind turbine order in the industry’s short history with Siemens AG.

The order was placed for 448 turbines, and they will be installed in Iowa for five different projects. The total value of these turbines is estimated at $1 billion.

The combined 1050 MW of total capacity is the rough equivalent of one nuclear reactor, we learned according to analysts from Raymond James in a note for clients on Tuesday.

“Iowa is already notable for having one of the highest levels of wind power penetration in the world: 24.5% as of 2012,” said the Raymond James analysts.

Siemens is going to be responsible for maintenance and service of the wind turbines, we learned from the company during Monday’s announcement. This order is representative of clean energy for roughly 320,000 households added the supplier.

MidAmerican Energy Co., also one of the units of MidAmerican Energy Holdings Co., announced earlier this year that it had plans to expand largely in wind.

At the five Iowa sites, construction is already underway said MidAmerican just last month. The company is expecting to generate over $3 million in landowner payments each year, plus they expect to pay $360 million for additional property taxes.

MidAmerican represents the largest energy company, natural gas provider and power supplier in Iowa, South Dakota, Illinois and Nebraska.