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  • The construction of the Cayuga Ridge wind farm is being financed with renewable energy stimulus funds (grants) provided by the US government
  • The company will sell the output from the 300 megawatt (MW) Cayuga Ridge wind farm to the Tennessee Valley Authority over the next 20 years, ensuring the profitability of the facility during the period
  • This wind farm, located in the state of Illinois, will be able to meet the average electricity consumption of 100.500 US households and is being built with US technology and labour
  • The agreement underscores IBERDROLA RENOVABLES commitment to the US, a key market in its growth strategy and where it has become the second-largest operator with nearly 3,600 MW of installed capacity

The US subsidiary of IBERDROLA RENOVABLES, the world’s leading wind power company(1), has signed its largest ever renewable energy sale contract with the Tennessee Valley Authority (TVA).

The 20-year agreement guarantees return during that time on all output of the Cayuga Ridge wind farm, which has installed capacity of 300 megawatts (MW). TVA, the US public company, will take a step further in its plans to add 2,000 MW of wind capacity to the system.

The Cayuga Ridge wind farm, currently under construction, is located south of Chicago near the towns of Odell and Emington in Illinois. IBERDROLA RENOVABLES is building the facility, which will be able to meet the average electricity consumption of 100.500 US households, with renewable energy stimulus funds (grants) provided by the US government.

This facility, whose construction work created more than 330 direct jobs, is scheduled to come on stream in the spring of this year. Cayuga Ridge is being built with turbines manufactured by a Pennsylvanica-based company.

The agreement underscores IBERDROLA RENOVABLES commitment to the US, a key market in its future growth strategy and where 42% of company’s project pipeline (which exceeded 57,400 MW(2) at the end of September 2009) is located.

IBERDROLA RENOVABLES has become the second-largest operator in the US, with operations in 20 states and installed capacity of nearly 3,600 MW –over 30% of the company’s global capacity- spread over 39 wind farms. The company, which already employs over 800 people in the US –nearly half of its total staff- has created more than 14,200 indirect jobs there since 2006.

The Tennessee Valley Authority is the largest public provider of electric power in the US. It mainly supplies the country’s large industries and 157 local distributors, through which the electricity reaches some nine million consumers in seven southern US states.

These agreements, known as a Power Purchase Agreement (PPA), ensure the long-term profitability of the energy facilities in the US. PPAs can exclusively cover the sale of energy or also include Renewable Energy Certificates (RECs), which can be traded in some US states.

US government support

Regulatory support of renewable energies is one of the main reasons IBERDROLA RENOVABLES is interested in the US. In fact, the company has so far received $577 million in US Treasury Department grants offered as part of the government’s incentive package for renewable energies to encourage companies to invest in the country.

IBERDROLA RENOVABLES hopes to receive an additional $430 million in 2010 as its wind farms come on stream. The company will reinvest all current and future grants in the US.

The grants provide an alternative aid to the PTCs (Production Tax Credits) and cover around 30% of investments made in each renewable energy installation coming on stream in 2009 and 2010 or whose construction is begun during this period.

IBERDROLA RENOVABLES is world leader(1) in both installed capacity (nearly 11,000 MW at the end of September 2009) and output (over 21,000 million kW/h).



The information and all statements contained in this press release have not been verified by independent third parties; therefore no express or implied warranty is made as to the impartiality, accuracy, completeness or correctness of the information or the opinions and statements expressed herein.

Neither Iberdrola Renovables, S.A., its subsidiaries or any entity within Iberdrola Group or subsidiaries, or any company participated by Iberdrola Renovables, S.A., assume liability of any kind, whether for negligence or any other reason, for any damage or loss arising from any use of this press release or its contents.

Neither this press release nor any part of it constitutes a contract, nor may it be used for incorporation into or construction of any contract or agreement.


This press release does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the provisions of the Spanish Securities Market Act (Act 24/1988, of 28 July), Royal Decree Act 5/2005, of 11 March, and/or Royal Decree 1310/2005, of 4 November, and its implementing regulations.

Particularly, this press release does not constitute an offer to purchase, sell or exchange or the solicitation of an offer to purchase, sell or exchange any securities in the United States of America. The shares of Iberdrola Renovables, S.A. may not be offered or sold in the United States of America except pursuant to an effective registration statement under the Securities Act or pursuant to a valid exemption from registration.


This press release contains forward-looking information and statements about Iberdrola Renovables, S.A. These forward looking statements relate to financial projections and estimates and their underlying assumptions, statements regarding plans, targets and expectations with respect to future operations, capital expenditures, synergies, products and services, and statements regarding future performance. Forward-looking statements are statements that are not historical facts and are generally identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates” and similar expressions.

Although Iberdrola Renovables, S.A. believes that the expectations reflected in such forward-looking statements are reasonable, investors and shareholders in Iberdrola Renovables, S.A. are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Iberdrola Renovables, S.A., that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the public documents sent by Iberdrola Renovables, S.A. to the Comisión Nacional del Mercado de Valores (the Spanish securities regulator, or the CNMV for its initials in Spanish).

The forward-looking statements are no guarantee whatsoever of future results and have not been reviewed by the auditors of Iberdrola, Renovables S.A. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date they were made. All oral or written forward-looking statements attributable to Iberdrola, Renovables S.A. or any of its board members, directors, officers, employees or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. All forward-looking statements included herein are based on information available on the date hereof. Except as required by applicable law, Iberdrola, S.A. does not undertake any obligation to publicly update or revise any forward-looking statements, even in the event of new information being published or new events occurring.

(1) Source: New Energy Finance  
(2) Includes an estimated 10,000 MW of pipeline projects owned by Gamesa Energía and subject to a strategic agreement between that company and Iberdrola Renovables.
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