Spanish giant boosts leadership ambition -- Another 608 MW sold

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Spain's Gamesa has clinched a deal to sell 608 MW of wind plant in Spain between 2005 and 2007 to Global Wind Partners (GWP). GWP is a 50-50 joint venture between Babcock & Brown (B&B) and Prime Infrastructures, a company dedicated to infrastructure investment. The deal includes the immediate sale of 158 MW across six sites. Two of the developments are already online, while the rest are close to completion.

The overall price tag is unclear. Gamesa says the initial 158 MW have gone for "over EUR 200 million," equating to a minimum price of EUR 1.3 million/MW, well over the current trend of EUR 1.1/ MW. The sale of the remaining 450 MW will be "based on agreed principles for determining the price," says Gamesa.

Strings attached to the deal include an agreement by GWP to use Wind 2 Market, an agency recently created by Gamesa to broker wind production sales directly on the wholesale electricity market. GWP also enters into a five-year contract with Gamesa's operation and maintenance services for plant sold under the agreement. The contract carries a five year extension option on expiry.

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Gamesa suggests the deal, signed just before Christmas, enabled the company to fulfil its EUR 222 million profit forecast for 2004. It maintains a plant development and sales forecast for 2005 of 612 MW, all in Spain, including GWP's 158 MW. Moreover, the deal could pave the way for Gamesa to achieve its ambition of world leadership in turbine sales (Windpower Monthly, January 2005). The company says it opens the way to possible deliveries of Gamesa Eólica turbines to B&B and GWP projects in the USA, Italy, Australia and other countries. GWP currently owns 147 MW in Australia, while B&B has been involved as an advisor on the development of 2000 MW of wind development globally. It also owns and manages plant in the US and Europe.

GWP fought off competition from major Spanish wind developers, including utility Iberdrola, Gamesa's biggest single shareholder, to secure the Gamesa plant. In total, Gamesa has now sold 1503 MW of its wind plant, 982 MW of which has gone to Iberdrola.

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