IBERDROLA, through its United States subsidiary, Community Energy (CEI), has signed an agreement with PPL Corporation for the sale of the entire energy produced by the Locust Ridge Wind Farm, the first complex to be built by the Company in the United States following the acquisition of CEI in May of this year.
The contract, the first of these characteristics to be signed by IBERDROLA in the country envisages the supply of the whole output of Locust Ridge to PPL Energy Plus, the commercial subsidiary of PPL Corporation, for 20 years from the wind farm start-up, anticipated for the first quarter of 2007.
Located in Mahanoy City, in the State of Pennsylvania, the wind farm will have a capacity of 26 megawatts (MW), and an estimated annual output of 70 Gwh, enough to supply electricity to about 20,000 homes. The new installation will have 13 windmills of 2 MW each, made by Gamesa, the company that will also be in charge of its assembly and start-up.
The environmental benefit of the project is equal to an offset of over 74 million pounds of carbon dioxide, the equivalent of planting over five million trees, or removing over 5,000 cars from the road each year.
Community Energy, whose headquarters are in Wayne (also in Pennsylvania), has a wind energy portfolio totalling 2,000 MW in several areas of the country, to which 200 MW in an advanced state of development should be added.
CEI has more than 3 billion kilowatt-hours of wind energy sales, 100,000 residential customers and marketing arrangements with around twenty investor-owned and municipal utilities.
Community Energy has already two wind farms in operation since the end of 2005: Jersey-Atlantic (7.5 MW), with an agreement to sell half of its output to a local utility authority, and Bear Creek (24 MW), which provides its output to PPL Corporation under similar terms to those just signed for Locust Ridge.
For its part, PPL Corporation, also located in the State of Pennsylvania, has an installed power of 11,500 MW in the United States and mora than five million electricity delivery customers, spread across the United States, Latin American and United Kingdom markets.
The United States has become one of the major countries for developing the goals of IBERDROLA in the renewable energy field, as is shown by the creation of the company IBERDROLA Renewable Energies USA, Ltd. in January of this year.
The start-up of Locust Ridge Wind Farm will enable IBERDROLA to continue towards meeting its growth targets in the renewable energy sector, one of the pillars of its strategy and which, at the close of this half year, had an operational capacity of 4.004 MW.
The Company’s target is to achieve 6,200 MW of installed power in 2008 and 10,000 MW in 2011. International expansion will be a key to achieving it and it therefore has new offices in Birmingham (United Kingdom), Rennes and Paris (France), Rome (Italy), Berlin (Germany), Warsaw (Poland) and United States, to be added to those already existing in Greece, Portugal, Mexico and Brazil.
It should be mentioned that as well as the mentioned acquisition of CEI, IBERDROLA has closed several significant international operations in 2006: the purchase of the French company Perfect Wind, with a project portfolio of 600 MW; the signing of a framework agreement with the City Council of Bayannaoer (northern China) to seek locations in which to install 1,000 MW of wind power; or acquiring its first two wind farms in the United Kingdom.
The Company’s firm commitment for renewable energy is part of its commitment to the environment and sustainable development and is in line with complying with the Kyoto protocol. In this context, IBERDROLA has become the only Spanish Electricity company and one of five in the world to be included in the Climate Leadership Index, international recognition that displays its firm decided strategy to combat climate change.