Iberdrola Renewables and Gamesa (GTQ1.DE) have signed the largest turbine supply contract ever in the wind power industry representing a total capacity of 4,500 megawatts (MW), for delivery between 2010 and 2012. The companies also announced joint ventures in Spain and internationally.
The investment for wind power projects to which the turbines will be assigned is approximately €6.3 billion, a figure that includes the turbines and other costs such as transport, civil works and interconnections, both those at the wind farms themselves and to the grid.
Iberdrola Renewables will assign the turbines to its wind power projects in Spain, the rest of Europe, the United States and Mexico. The contract covers installation and startup of the turbines, as well as operational services and maintenance during the life of the guarantee.
As a result of this agreement, Iberdrola Renewables will be able to meet its turbine supply needs during the coming years for its wind power project portfolio, which currently stands at 43,280 MW, not including projects to be incorporated from Gamesa Energía. More than 70% of its requirements will thus be met up to 2012, the company said.
The deal follows a similar agreement made with Gamesa in 2006 for 2,700 MW in capacity, and those signed recently by Iberdrola Renewables with General Electric (NYSE: GE) (300 MW), Mitsubishi (300 MW), Suzlon Wind Energy Corporation (SUZL.BO) (700 MW) and Ecotècnia (310 MW).
Iberdrola Renewables and Gamesa Energía have also signed a strategic agreement to create two joint companies, one in Spain and the other abroad, to pool their businesses in promotion, development and exploitation of wind farms in Spain and continental Europe.
In Spain, Iberdrola Renewables will hold 77% of the new company operating there and Gamesa 23%, while in the other international company the shareholdings will be 76% and 24%, respectively.
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