Iberdrola Renewables Signs Turbine Contract with General Electric
The Company has consolidated its world leadership* in the wind sector, with 8,164 MW** installed at the end of the first quarter of 2008
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May 9, 2008
- The Company is acquiring turbines with a total capacity of 300 MW for its wind power projects in the United States, to be delivered in 2010
- Iberdrola Renewables thereby covers turbine requirements for its wind farm program up to 2010, in line with the objectives of its 2008-10 Strategic Plan
Iberdrola Renewables has signed a contract with General Electric for the supply of turbines with a total capacity of 300 megawatts (MW). The total investment related to development of this wind capacity will total approximately €430 million.
Under the terms of the contract, Iberdrola Renewables will acquire 200 General Electric turbines of 1.5 MW capacity each, for delivery in 2010 to its wind farms in the United States.
With this contract, consistent with the goals of the 2008-10 Strategic Plan, Iberdrola Renewables completes its turbine supply program for its wind power program in the U.S., thus avoiding one of the principle uncertainties in this business and guaranteeing the installation of a major part of its projects in the short and medium term.
The agreement with General Electric follows the previous purchase of 300 MW in turbine capacity from Mitsubishi in the context of a framework agreement, scheduled for delivery in 2010 in the United States, and acquisition last year from Suzlon Wind Energy Corporation of turbines with a capacity of 700 MW, for delivery between 2008-2009.
Also, in 2006, Iberdrola Renewables signed a contract with Gamesa for the supply of 2,700 MW in turbine capacity for delivery between 2007 and 2009.
Strengthened presence in the U.S.
These supply contracts help Iberdrola Renewables to strengthen its presence in the U.S. market, where it has become the second largest wind power company by installed capacity. The Company had 2,392**MW in installed capacity there at the end of the first quarter of 2008 and a project pipeline of 22,138 MW - more than half the total pipeline - in the United States.
Iberdrola Renewables has accumulated a total installed capacity of 8,164 MW** at the end of the first quarter, an increase of 80% compared to the 4,552 MW at the same period last year. Of this total, 7,822 MW** correspond to wind farms and 342 MW to mini hydro plants.
The Company, which has consolidated its leadership in the world wind power sector*, now has 4,681 MW of installed capacity in Spain and 3,483 MW** abroad. Iberdrola Renewables plans to invest €8.6 billion between 2008-2010 to install 2,000 MW a year and reach 13,600 MW at the end of the period. Currently, it has 1,367 MW under construction worldwide.
* Source: New Energy Finance (May 2007)
** Includes 606 MW owned by a third party under energy sales contract
This announcement is not an offer for purchase, sale or exchange of securities. Shares in Iberdrola RENEWABLES S.A. may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended.