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Bidding war for Valencia development
1 August 2008
Utilities Iberdrola, Enel and Unión Fenosa are battling it out for the ownership of a 250-304 MW extension offered by the government of Valencia to its tightly controlled wind development plan. In 2003, the Valencia regional government, or generalitat, doled out licenses to five consortia to build a combined 2300 MW in Valencia, on Spain's Mediterranean coast, to end 2008. Delays in building power lines have allowed just over 600 MW to connect so far, with a further 600 MW building. Now the generalitat has called for an extension of up to 304 MW. Three of four consortia competing for rights to the extension have confirmed their bids. Iberdrola Renovables plans to install 304 MW, plus a 50 MW solar thermoelectric plant, through a specially created joint venture called Sistemas Energéticos de Levante, in which it holds a 60% stake. The rest belongs to savings bank, Bancaja. A second 250 MW proposal is led by Enel Unión Fenosa Energías Renovables (EUFER), a 50-50 renewables joint venture between Italian-Spanish competitors Enel and Unión Fenosa. With a 57% stake, EUFER controls the regional wind consortium Energías Especiales Valencianas formed together with savings bank Caja Mediterráneo (CAM), with 18%, and local investment firms Gesesa and Edisa, each with 12.5%. Neither Iberdrola nor EUFER yet own wind capacity or concessions in Valencia. Another contender, also proposing 250 MW, is Med Wind, an established regional wind development consortium. Med Wind owns half of Renomar, which has already put up the bulk of Valencia's existing capacity. The fourth contender is rumoured to be Spanish and global wind major Acciona Energía, the other half of Renomar. As with the 2003 concession, the generalitat has emphasised that bids providing local jobs will be favoured. Valencia has become one of Spain's fastest growing regional wind markets. In 2007, it commissioned 257 MW, a year-on-year growth of 76.93%.
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