Energias de Portugal has placed a wind turbine order to increase the capacity of its Actuacion Janda II project in southern Spain and has been linked to speculation about a possible merger with Gas Natural.

Neo Energia, which is part of the Energias de Portugal group (EDP), placed an order for 35 units of V90 1.8MW and 2.0MW wind turbines from Vestas. The order comprises supply and installation of three wind power plants included in the Actuacion Janda II project.

The projects will be installed in Medina Sidonia in the Cadiz province in Andalusia, one of the windiest regions in Spain. Delivery of the wind power plants will take place in the first half of 2008.

In other news, rumors of a possible merger between EDP and Gas Natural have reportedly been dismissed by Portugal’s finance and economy ministries as mere speculation. Prior to the government’s announcement, EDP’s share price had risen by around 3% as investors welcomed El Mundo newspaper’s report of a possible tie-up. AFX News reports that both EDP and Repsol YPF, which has a stake of more than 20% in Gas Natural, have declined to comment on the rumor.

Fresh from this seemingly quashed speculation, AFX News reports that EDP has also been receiving media attention amid rumors that it could be planning to float its Neo renewable energy division, and that it is soon to announce having won 1,000MW of wind farm capacity in an auction, beating consortiums that included Gal Energia, Iberdrola and Enel.