Gamesa awarded 4.5GW wind turbine order by Iberdrola Renovables

Jun 16, 2008 (Datamonitor via COMTEX) -- IRVSF | Quote | Chart | News | PowerRating -- Spanish wind power company Gamesa Tecnologica's board of directors has approved an agreement with Iberdrola Renovables, to supply the latter with wind turbines totaling 4.5GW capacity. This deal is claimed to be the largest ever sale agreement of wind turbines in the history of the global wind energy sector.

This agreement was complemented by the signing of a strategic wind farm agreement through which both companies' competencies in the promotion, development and operation of wind energy projects in Spain and continental Europe will be merged.

According to the agreement's terms and conditions, the purchase and sale of wind turbine generators will come about between 2010 and 2012, and they will be destined for wind energy projects in Spain, the rest of Europe, the US and Mexico. The agreement includes the wind turbines' assembly and start-up, along with operations and maintenance services during the wind turbines' warranty period.

The investment figure linked to this amount of wind power will reach approximately E6.3 billion. In addition to the cost of the turbines supplied by Gamesa, this figure additionally includes other items like transport, civil works and all electrical connections of both the wind farms as well as to the electricity grid.

In addition, Gamesa will sell its wind energy projects in the UK, Mexico and the Dominican Republic to Iberdrola Renovables for approximately E65 million within a month. The total power capacity of these projects amounts to 940MW.

Gamesa and Iberdrola Renovables have additionally signed an agreement on the joint promotion, development and operation of wind farms in Spain and continental Europe. In order to put this agreement into practice, two joint venture companies will be set up, one that includes the businesses in Spain and the other one that includes the businesses in some specific countries in continental Europe.

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