Spain's Iberdrola Sells 32 Windfarms in France

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Researched by Industrial Info Resources (Sugar Land, Texas)--Energy group Iberdrola (MCE:IBE) (Madrid,Spain) sold its French windfarms to General Electric (NYSE:GE) (Fairfield, Connecticut), Munich Re (BER:MUV2) asset manager Meag, and EDF (PAR:EDF) (Paris, France) for an initial $462 million, bringing the proceeds of asset sales to $1.1 billion.

The portfolio of onshore windfarms, which are spread throughout France and were commissioned in 2006-12, have a combined capacity of 321.4 megawatts (MW). Electricity generated is sold according to long-term contracts under France's feed-in tariff.

Upon completion of the transaction, subject to regulatory approval, the wind portfolio's ownership will be GE Energy Financial Services and MEAG with 40% apiece, and EDF Energies Nouvelles with 20%. According to a statement from the companies, the consortium plans to re-power some of the windfarms, which feature 160 turbines, to improve their efficiency and reliability.

The companies said that EDF will provide asset management while operating and maintaining the plants, which were commissioned from 2006 to 2012 and are connected to the power grid. EDF Energies Nouvelles is a subsidiary of the EDF Group and its renewable energy arm. The share of Munich Re is valued in "the low three-digit millions," the company said in a statement.

Iberdrola is Spain's second-largest electric utility, with 9.6 million customers and an installed 19 GW capacity, although it is the most aggressive investor in combined-cycle gas turbine (CCGT) and renewable energy. Outside Spain, its interests are in Mexico (generation), Brazil (distribution) and at home in a number of diversified business lines (property and engineering), and the 2007 acquisition of Scottish Power.

For more information, see January 2, 2013, article - Iberdrola Awards German Offshore Wind Turbine Contract.

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