The Chairman of Iberdrola Renewables, Ignacio Galán, and the First Vice President of the EBRD, Varel Freeman, met today in Madrid to establish the necessary steps to complete this venture in the coming weeks following recent approval by their respective boards.
Pursuant to this agreement, the EBRD will invest a maximum of €125 million in Iberdrola Renewables subsidiaries in Poland (€75 million) and Hungary (€50 million), via two rights issues giving it 25% stakes in both companies.
These subsidiaries will develop a total of 309 MW of wind energy projects, of which 211 MW are already operational and 98 MW still under construction. The company invested nearly €100 million in the region in 2009.
Iberdrola Renewables owns the Kisigmand wind farm in Hungary, the country’s largest with 50 MW of capacity, in addition to two more wind farms currently under construction which will total 74 MW of capacity. The company already has 160.5 MW of installed capacity in Poland through four wind farms.: Galicja (12 MW), Kisiliece (40.5 MW), Malbork (18 MW) and Karscino (90 MW).
Mr. Galán and Mr. Freeman have also agreed to jointly study the market in Romania, a country with an attractive future in renewable energies.
Leadership in Eastern Europe
This agreement will allow Iberdrola Renewables to build on its position as the leading wind power company in the region with assistance from the EBRD, the largest investor there.
Iberdrola Renewables, with operations in 23 countries, is world leader in its sector in both installed capacity (with nearly 11,000 MW at the end of 2009) and output (over 21,000 million kWh).
The European Bank for Reconstruction and Development is an international financial institution based in London and set up in 1991 that supports projects in 29 countries from Central Europe to Central Asia.