E.ON Buys Wind Farms in Spain & Portugal

Building on its pledge to invest Euro 3 billion [US$ 4 billion] in renewables by 2010 — mainly in offshore wind power — German utility E.ON announced yesterday it is acquiring Energi E2 Renovables Ibericas, a wind farm operator, from the Danish utility Dong Energy at a purchase price of Euro 722 million [US$ 994 million].

The price includes €256 million [US$ 352 million] for the assumption of existing net debt.

Currently E2-I generates electricity in Spain and Portugal from renewables with a net capacity in operation of about 260 megawatts (MW). Modern wind farms account for most of that capacity, with smaller hydropower and biomass plants making up the rest. Further wind farms totaling an additional net 560 MW are already being planned at particularly favorable locations on the Iberian peninsula; with completion expected in the next four years.

With its acquired wind farms, E.ON is increasing its installed wind power capacity to approx 700 MW. This acquisition will give E.ON a total generation capacity of over 7 GW in Spain by 2010, in combination with the Viesgo and Endesa assets that E.ON has agreed to acquire from ENEL and Acciona.

“Wind power will play an important role in our future energy mix. It is CO2-neutral and can be used economically with the aid of modern, efficient plants at wind-exposed sites,” E.ON CEO Wulf H. Bernotat. “E2-I makes this possible. The wind farms are of outstanding quality with superb load factors and favorable regulatory regimes, and the projects being developed are also very promising.”

With the exception of large hydroelectric power, all of E.ON’s existing renewable activities will be pooled, as well as international climate protection projects under the flexibility mechanisms of the Kyoto protocol, i.e. Joint Implementation (JI) and the Clean Development Mechanism (CDM).
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