Las Vegas, Nevada's Sierra Pacific Resources [1] (NYSE: SRP [2]) and Austin, Texas-based Renewable Energy Systems [2] Americas said they are in talks to jointly develop and operate a large wind energy project on the Nevada-Idaho border.

Renewable Energy Systems is part of the U.K.'s Sir Robert McAlpine Group, a construction, design and engineering company.

Sierra Pacific said the proposed 200 megawatt wind farm, called the China Mountain Project, would be located on a combination of federal, state and private lands.

"The area where this project would be located provides the combination of a good wind resource and the relatively gentle terrain needed for construction access," said Tom Fair, head of Sierra Pacific Resources' renewable energy program.

"Preliminary wind resource analyses completed to date have found this site to be favorable for developing a utility scale wind-energy facility."

The project, which would produce electricity to deliver energy to Sierra Pacific Resources' power grid, would be subject to approval by the Public Utility Commission of Nevada.

"The combined efforts of our two companies will enable the earlier development and construction of a cost-effective wind energy project that is sensitive to the environment and that brings significant economic benefits to the surrounding communities," said Scott Piscitello, director of development at Renewable Energy Systems.

Sierra Pacific said the wind farm would go through a rigorous environmental review process and expects an official notice for preparation of an Environmental Impact Statement in 2008.