Enel signs 2.6GW supply agreement with Siemens and Vestas

ITALY: Enel Green Power (EGP), the renewable energy unit of Italian utility Enel, has signed major supply agreements with manufacturers Siemens and Vestas giving it access to up to 2.6GW in turbines.

Siemens has announced that it would supply EGP with up to 260 wind turbines, or 600 MW, for wind farm projects in Italy, France, the Iberian peninsula, Greece, Romania and Bulgaria for the 2011-2014 period.

EGP also has an option on another 600MW of Siemens machines in the same period.

Vestas also recently revealed that it had signed an agreement to supply EGP with 400MW in wind turbines in 2011-2014. EGP has a further option to increase the Vestas order by 1GW.

EGP is planning to see its total installed capacity rise from 5.8GW as of June 30, 2010 to 9.2GW by 2014.

Wind energy now represents 41% of the total capacity figure, but will become EGP's most important generation source in coming years.

As of June 30, 82% of the 1.2GW EGP projects under construction were wind farms. 90% of its 29.9 GW pipeline is in wind energy.

Meanwhile, Enel's initial public offering of a minority stake in EGP is set to end tomorrow.

Enel has reportedly cut the minimum indicative price per share to €1.6 per share from a previous €1.8. At this new price, 100% of EGP would be valued at €8 billion and Enel would pocket €2.6 billion from the sale.