Monday, June 16, 2008

Largest transaction in the wind sector ever signed between Gamesa and Iberdrola Renewables

The supply element of the contract is for 4,500 MW of wind turbines for deliver between 2010 and 2012. This will add significant orders to Gamesa's order books and allow the company to continue to plan further expansion. For Iberdrola Renewables it means that the company can check off another critical question mark in its ambitious future plans. These turbines will meet 70% of the companies needs till 2012. This is not the first big name developer to sign over a significant proportion of its wind turbine needs to one company. It seems increasingly that the order books of the largest firms are find order of several 100 MW , if not a GW or more of power from one developer. This deal in particular will costs about 6.3 billion euro, a figure which includes the turbines and other costs such as transport, civil works and interconnections, both those at the wind farms themselves and to the grid. The contract covers installation and startup of the turbines, as well as operational services and maintenance during the life of the guarantee. The contract follows another signed with the same company in 2006 for 2,700 MW in capacity, and those signed recently by IBERDROLA RENEWABLES with General Electric (300 MW), Mitsubishi (300 MW), Suzlon Wind Energy Corporation (700 MW) and Ecotècnia (310 MW). The size of these contracts allows the company to get optimum terms for its contracts.

The basics of rest of the deal are that Iberdrola Renewables will acquire the wind projects of Gamesa in the United Kingdom, Mexico, Dominican Republic. These projects have a total of 900 MW of capacity and will cost the company 65 million Euro. In addition the two companies have signed a strategic agreement to jointly work to promote, develop and manage wind projects across continental Europe, with a keen focus on the domestic Spanish market.

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