Iberdrola Renewables signs a 25 year agreement to sell the total output from its Big Horn 2 power project in the US

Iberdrola Renewables, the largest provider of wind energy in the world, has executed an agreement to sell the entire output from its from its Big Horn 2 Wind Project to the Californian company M-S-R Public Power Agency for the next 25 years. The agreement has been signed prior to the construction of the project, which will start in the spring of 2010 in Klickitat County (Washington).

M-S-R Public Power supplies power to the California state electricity company, Modesto Irrigation District, and the cities of Santa Clara and Redding. Thanks to this agreement, 40% of the power supplied will come from renewable sources.

For Iberdrola Renewables, the agreement ensures the long-term profitability of the 50 MW Big Horn 2 project. The company already has an agreement in place with M-S-R Public Power to purchase the output from the 200 MW Big Horn I power project

This type of contract, known as a Power Purchase Agreement (PPA), ensures the long-term profitability of energy facilities in the US.

Iberdrola Renewables is the second largest operator in the US and operates in 19 states with installed capacity of 3,459 MW at the end of September 2009 (more than 30% of the company’s total global capacity). At the same date, the company also had 368 MW under construction in the country.

The company regards the US as a key market for its future growth, with 42% of its project pipeline (which exceeded 57,400 MW(2) at the end of September 2009).

Iberdrola Renewables is world leader in both installed capacity (10,477 MW at the end of September 2009) and output (15,052 million kW/h).