Iberdrola Signs 4500-MW Wind Deal

Wind developer Gamesa has signed a deal with Spanish utility Iberdrola for turbines with a total capacity of 4500 megawatts (MW) for wind projects in Europe, the United States and Mexico.

The deal also includes the sale of projects in the UK, Mexico and the Dominican Republic with a total capacity of 940 MW, for around €65 million [US $100.6 million]. The transaction allows Iberdrola to meet more than 70% of its requirements for turbines up to 2012, the company says. The 4.5 gigawatts (GW) of machines are scheduled for delivery between 2010 and 2012 and will require an investment approximately €6.3 billion [US $9.7 billion], which includes the cost of the turbines and other costs such as transport, civil works and interconnections. The contract covers installation and start up of the turbines, as well as operational services and maintenance during the life of the guarantee.

The two companies have also signed a strategic agreement to jointly promote, develop and manage wind projects in Spain and continental Europe. The companies are creating two joint companies, one in Spain held 77% and 23% respectively. The second company will be held at 76% and 24%, respectively.
 
The strategic agreement, subject to the corresponding approvals from the competition authorities, also allows Gamesa to increase its shareholding in the Spanish company up to 32% in relation to the new wind farm capacity the company will own after the agreement takes effect. Both companies have agreed to not sell their stakes before December 31, 2010. In addition, from January 1, 2011, through a mechanism of matching options, Iberdrola will have the option to acquire Gamesa’s shareholding.

In a statement, Gamesa said the operation’s objective is to merge two leading firms in the wind farm promotions and development sector.

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