Iberdrola and Gamesa in Huge Windfarm Deal

Jun 20, 2008 - The Herald

The renewable energy subsidiary of ScottishPower owner Iberdrola yesterday said it was buying a raft of global windfarm projects from Spanish turbine maker and developer Gamesa for euro65m (GBP51m), including three potential sites in Scotland.

The move is part of an overall euro6.3bn alliance and turbine supply deal between Iberdrola Renovables and Gamesa, billed as the largest deal in the history of wind power.

Bilbao-based Iberdrola, which last year acquired ScottishPower for GBP11.6bn, said it will buy the Gamesa turbines to generate 4500 megawatts, which will provide 70per cent of its generator needs until 2012.

Gamesa Corporacion Tecnologica and Iberdrola Renovables said the alliance would develop and run wind power parks in Spain and throughout Europe.

The euro65m part of the deal will see Iberdrola Renovables acquire wind projects from Gamesa in the UK, Mexico and the Dominican Republic, including two potential sites in Scotland at Whitelee, near Eaglesham, and Caithness, currently under planning review.

A site in Dumfries and Galloway is also being considered, an Iberdrola spokesman told The Herald yesterday.

"If these sites win planning approval, these former Gamesa projects will automatically transfer to Iberdrola Renovables, " the spokesman added.

Iberdrola Renovables, the biggest wind power producer in the world with 8164 megawatts of installed capacity, is the renewable energy arm of Spain's largest utility, which owns 80per cent of the renewables unit. Iberdrola also owns almost 24per cent of Gamesa.

Originally published by Newsquest Media Group.