In an attempt to strengthen its expansion into the US wind energy market, Spain's Iberdrola has signed a contract to acquire 100% of MREC Partners and the company in which it participates, Midwest Renewable Energy Projects, for more than E30 million.
Iberdrola forecasts investing some $2 billion up to 2011 to develop the project portfolio of both companies, which amounts to 1,600MW of wind power located in various parts of the mid-West US. Of this figure, 400MW is in an advanced development stage and 1,200MW in the initial study stages, with a high probability of being authorized.
The acquisition of MREC Partners and Midwest Renewable Energy Projects, which is subject to obtaining the approval of the competent authorities in the US, will allow Iberdrola to continue its growth targets in the renewable energy sector, in which the company is a leading world operator, with 4,076 watts installed at the close of the third quarter of 2006, of which 3,743 are wind power.
This deal follows a recently signed agreement with Gamesa to acquire wind farms in the US between 2007 and 2009. Similarly, in May, Iberdrola completed the acquisition of Community Energy, with 2,200MW being developed in the US, of which 200MW are in an advanced development stage.
Iberdrola forecasts achieving 7,000MW of installed renewable power by 2009 and 10,000MW by 2011, and believes that international expansion will be the key to reaching these targets.