Iberdrola Targets 13,600 Megawatts of Renewable Energy in $34 Billion Investment

---

Researched by Industrial Info Resources (Sugar Land , Texas)--Spain's global power giant Iberdrola (Madrid, Spain) will invest $12.4 billion to develop the renewable segment of its business from 2008 to 2010. The company aims to have a total installed capacity of 13,600 megawatts (MW) of renewable energy in 2010, which will be a 77% increase on the 7,700 MW of capacity targeted for the end of 2007.

The company has a worldwide project portfolio of more than 41,200 MW, including 3,300 MW of windfarms in the U.S., 900 MW in Spain, 800 MW in the United Kingdom and 800 MW of wind-based projects elsewhere. It has 100 MW of renewable energy projects, not sourced from wind, underway. About $6.6 billion will be invested in the U.S., $ 1.7 billion in Spain and a similar amount in the UK and $2.2 billion in other countries.

In Spain, Iberdrola will focus on Galicia Province with the installation of 3,000 MW of renewable energy capacity, which will include hydroelectric projects and windfarms. In the 2002-07 period, the company invested $1.44 billion in Galicia and will invest $1.4 billion more on projects from 2008 onwards. Fifteen windfarms with a combined capacity of 600 MW represented 35% of the company's generating capacity in the region in 2006. Eighteen hydropower installations in Galicia have a total capacity of 1,348 MW. In the next phase of the company's renewables strategy in Galicia, $865 million will be invested in hydro and windpower to add 1,000 MW of capacity. The $576 million Santa Cristina hydropower project on the Sil River will begin construction in 2009 and go into operation in 2016. Two peak demand hydro-pump power stations totaling 1,076 MW are being planned

In Egypt, Iberdrola will work with Japan's Mitsui to build a 150-MW solar thermal power integrated solar combined cycle (ISCCS) plant at Kurayamat where the solar contribution in the middle of the day will add 40 MW to the 110 MW of gas-sourced power. In Spain, the national drive to have up to 1,200 MW of photovoltaic-sourced power by next year is well ahead of the original target of 400 MKW by 2010.

In a $34.8 billion strategic investment plan through 2010, Iberdrola will invest $25.6 billion in organic growth. About $8.4 billion will be invested over the next three years in regulated businesses to improve quality of service. About 36% is set to go into the electricity transmission and distribution sector in the UK, 35% into electricity distribution in Spain, 24% in to electricity and gas distribution in the U.S. and 5% into Latin America.

After acquiring Scottish Power this year, the company is putting $9.2 billion to close the acquisition of Energy East (NYSE:EAS ) (New Gloucester, Maine) in the U.S., which will give a fast boost to its market presence with 3,800 MW of new capacity, 1.8 million points of supply in electricity, 0.9 million points of gas supply and 3.3 billion cubic meters in gas storage capacity.

Worldwide, the group has 41,000 MW of current installed capacity operating in 30 countries and 27 million customers.

Industrial Info Resources (IIR) is the leading marketing information services company for the industrial process, heavy manufacturing and energy-related markets throughout the world. For more than 24 years, IIR has provided accurate and timely intelligence through products such as plant and project information databases, focused market databases, industry forecasting, key industry contacts, industry and territorial map products, direct marketing services and applications, and daily industry news.