Iberdrola S.A. Reduces Presence in U.S., Spain

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Researched by Industrial Info Resources (Sugar Land, Texas)--Wind power giant Iberdrola S.A. (MCE:IBE) (Bilbao, Spain) has announced that it will be cutting back on project development in the U.S. and Spain for 2011 and 2012. Iberdrola Renewables (Portland, Oregon), the U.S. division of Iberdrola, the fourth-largest utility company in the world, ranks as the second-largest wind power operator in the U.S.

Some of the major factors driving the cuts in the United States are economic instability; the inability of projects to receive financing and power purchase agreements; transmission constraints; and changes in demand. Also, no long-term legislation is in place for renewable energy, and government subsidies are expiring in the U.S. and Spain.

In the U.S alone, Iberdrola expects to reduce the amount of development in renewable projects from approximately 1,400 megawatts (MW) to approximately 700 MW in generation. Currently, Iberdrola has more than 40 operational wind facilities throughout 23 U.S. states. Industrial Info is monitoring 29 projects that are under construction, being engineered, or in the planning stages.

Iberdrola has redirected some of its attention to Latin America, where a rapid economy is prevalent in contrast to the economies of Spain and the U.S. Although Iberdrola has cut its percentage of wind development, it is involved in other areas of renewable energy, such as biomass and solar projects. Iberdrola also has expressed an interest in the acquisition of Elektro, a Brazil-based utility, for operational assets and controlling interest with a total investment of $2.6 billion.

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