Iberdrola SA (Spain) has bought up to 1,100MW of wind-powered energy from alternative energy company Grupo Auxiliar Metalurgico SA (Gamesa, Spain) for around EUR1.0 billion. Iberdrola, through its renewable energy subsidiary, IbeRenova, signed an agreement with Gamesa to cooperate in the exploration and utilization of renewable forms of energy through 2006.
The deal will see Iberdrola acquire wind parks from Gamesa in Spain and abroad, while Gamesa will supply wind generators to Iberdrola. Iberdrola will initially pay Gamesa EUR693.0 million for wind parks with a capacity to generate 666MW by the end of 2002. This includes taking on some of Gamesa's debt. A further EUR337.0 million to EUR376.0 million will be spent on acquiring a range of wind parks with a capacity of 316MW, which will be operational by 2006, with 283MW operational by the end of next year.
