Through the transaction, AES Wind Generation acquired a 51 percent stake in the pipeline, and will take ownership of up to 90 to 95 percent, pending completion of certain milestones by Reichert.
Of the total pipeline, 158 MW of wind turbines projects are expected to begin construction next year and will require approximately $80 million of AES equity through the end of 2011. Completion of the entire pipeline would require approximately $175 million of AES equity through the end of 2014.
"Increasing our presence in Poland’s wind energy market falls in line with our strategy to pursue high-growth renewable energy markets. With 775 MW in our development pipeline, we are establishing a strong foothold in one of Europe’s most attractive markets for wind power generation," said Paul Hanrahan, President and Chief Executive Officer of AES.
The Reichert investment builds on AES Wind Generation’s recent entry into the Polish wind power market through its acquisition of 3E’s 422 MW development pipeline, announced in April 2010.
With this new investment, AES Wind Generation has a development pipeline totaling 775 MW in Poland. Of AES Wind Generation’s global development pipeline of approximately 6,000 MW, nearly one-third of those projects are located in Europe.
Poland has aligned its renewable energy targets with those of the European Commission, with plans to reach 10.4 percent in 2010 and 15 percent in 2020.
Today about 90 percent of Poland’s generation capacity comes from thermal power, and growth in wind power generation is a key part of the country’s effort to meet its renewable targets.
Poland’s current installed base of wind energy capacity is at 725 MW, and is projected to reach 6,000 MW by 2020. According to the European Commission, Poland is one of the fastest growing economies in the European Union.
AES Wind Generation has 288 MW of wind turbines capacity in operation throughout Europe, and approximately 1,700 MW in operation globally. An additional 50 MW of wind farm generation capacity is projected to come on-line in China by the end of 2010.
The AES Corporation (NYSE: AES) is a Fortune 500 global power company with generation and distribution businesses. Through our diverse portfolio of thermal and renewable fuel sources, we provide affordable and sustainable energy to 31 countries. Their workforce of 27,000 people is committed to operational excellence and meeting the world’s changing power needs. Their 2009 revenues were $14 billion and we own and manage $40 billion in total assets.