New $223M wind project could add up to 62 turbines across Hidalgo and Starr counties

One of the Rio Grande Valley’s largest wind farm developers is planning a $223.38 million expansion that would double its energy production in western Hidalgo County by the end of 2028.

According to a tax abatement application filed by developer Terra-Gen, the Monte Cristo Windpower Phase II project will include between 54 and 62 wind turbines spread out between La Joya and McCook, with a few turbines spilling over into eastern Starr County. 

The project is supposed to begin construction by the end of 2027 and have a capacity to generate at least 236 megawatts when it’s completed by the end of 2028.

That’s enough energy to power at least 59,000 homes, according to the Electric Reliability Council of Texas.

“The wind farm will provide “clean” renewable power to customers served by Terra Gen, LLC,” Terra-Gen Vice President of Development Milton Howard wrote in the application. “Wind energy creates little or no emissions impacting the environment. The project will continue to provide this clean energy source for decades to come.”

Terra-Gen says the project aims to make use of land that is currently being used for agriculture and ranching.

The company says the location of the site is “remote and not ideal for industrial or commercial

development but is well suited for a wind farm.”

Without the wind farm development, “the land could remain in its current state and would be unlikely to attract new investment to the area,” according to Howard.

Monte Cristo II will have a significant economic impact while it is being constructed.

Terra-Gen expects the project to create between 100 and 150 temporary construction jobs over its installation timeline, which could last a little more than a year.

In addition to the turbines, to complete the project, Terra-Gen will have to install several thousand feet of transmission collection system cable and junction boxes, overhead transmission and interconnection infrastructure, additional meteorological towers, and roads.

When construction ends, two new fulltime permanent jobs for operation and maintenance will remain, with base salaries of about $49,000.

According to Terra-Gen, since those salaries exceed the county’s average earnings of about $42,000 a year, those two new jobs qualify as “high-wage” jobs.

“The Project will contribute to the expansion of employment, attract major investment to

Hidalgo County, benefit the property on which it is constructed, and contribute to the

economic development of the County,” Howard wrote.

Terra-Gen is actively preparing for the project.

“We are currently advancing key commercial and procurement activities for the project, including power offtake discussions, equipment supply arrangements, and construction planning,” the company said in a statement.

Last summer and earlier this year, the project passed other milestones: tax abatements.

In July 2025, the Hidalgo County Commissioners Court approved a ten-year tax abatement for the project, which at the time was expected to be appraised at $240,145,000 and to start construction by the end of this year.

The county agreed to abate 60% of ad valorem taxes applicable to the newly created value, which meant the abatement was worth about $7.45 million.

At a special meeting in February, South Texas College (STC) trustees approved a second abatement agreement for the project.

STC agreed to a 50% tax abatement for a decade effective after the project’s completion. 

In lieu of taxes, Terra-Gen agreed to pay a total of $140,000 to the South Texas College Foundation for scholarships: $40,000 at the start of construction and $10,000 yearly over the next 10 years.

Terra-Gen is also seeking agreements with South Texas Independent School District and Edinburg Consolidated Independent School District, the other two entities that have taxing jurisdiction over the site. 

When Monte Cristo II is completed, it will represent a doubling of Terra-Gen’s wind energy output centered in western Hidalgo County.

Last year, Terra-Gen celebrated the completion of the Monte Cristo Windpower Phase I — a 238.5 megawatt facility a little to the northeast of the new project — after a delay of years.

That facility, Terra-Gen officials said, started in 2017 but failed to move forward until after a shakeup to Texas’ grid infrastructure in 2021.

Terra-Gen has one other long-awaited Valley project that hasn’t come to fruition yet: Monte Alto Windpower.

The 202.5 megawatt, 39-turbine site is at the corner of Cameron, Hidalgo and Willacy counties, and has been under development since at least 2016.

That project has been repeatedly delayed, though the site is still under development and is anticipated to be completed by the end of 2028.

When the Monte Cristo II and the Monte Alto projects are finally completed, they will give Terra-Gen a wind production capacity in the Valley of about 677 megawatts.

The completion of those projects and others in production in North Texas, would put Texas at the forefront of San Diego, California-based Terra-Gen’s wind energy production, which is currently primarily generated in California.