Renewables division of EDP buys two developers

The renewables division of Portugal's national utility, EDP Renováveis, has entered the Romanian wind power market, spending EUR 8.5 million last month to acquire an 85% stake in two local companies, Renovatio Power and Cernavoda Power. The deal gives EDP ownership of a 736 MW wind development pipeline in Romania. The projects are at different stages of development, with three totalling 225 MW closest to construction and classified with Tier 1 status, says EDP. A further 60 MW is deemed Tier 2 and 12 MW Tier 3, while around 440 MW is "classified as prospects." EDP will pay an additional "success fee" to the seller as and when the projects reach construction. The company is aiming to install around 1.4 GW of new wind capacity a year on both sides of the Atlantic Ocean and has a target for 10.5 GW of cumulative installed capacity by 2012.