Gamesa to Sell Iberdrola 4300 Megawatts of Wind Power

Gamesa and Iberdrola sign a new wind energy framework agreement. Gamesa and Iberdrola sign a new framework agreement encompassing wind turbines sales, maintenance services and offshore wind power.

As part of the new agreement, which replaces a venture signed in 2008, Iberdrola will purchase from Gamesa a minimum of 50% of the onshore wind turbine fleet the power company buys between 2013 and 2022, or up to 3,800 MW (whichever comes first).

The companies will forge closer ties in maintenance services, with the goal of making Gamesa the lead supplier in this area: Iberdrola awards Gamesa a contract to maintain 1,748.3 MW in Spain and Portugal (G4X-650 kW and G5X-850 kW wind turbines), and extends by one year a maintenance deal on 2,312 MW of G8X-2.0 MW machines.

Both companies agree to work closely together on the development and eventual delivery of Gamesa offshore wind turbines to Iberdrola.

Gamesa, a global technology leader in wind energy, and Iberdrola signed a new framework agreement calling for the power company to purchase from Gamesa a minimum of 50% of the total onshore turbine fleet it buys for its renewable energy business on Spanish and international markets between 2013 and 2022, or until the number of MW purchased totals 3,800 MW, whichever comes first.

The new agreement extends the companies’ joint efforts to other business areas which are strategic for Gamesa, including operation and maintenance services (O&M) and offshore wind farm.

The new agreement replaces a contract signed by both companies in June 2008. Nonetheless, the rights and obligations of that framework contract remain intact for next year in terms of planned capacity of 502 MW in 2012.
New joint cooperation in maintenance services (O&M) and offshore

The companies have also resolved to work together on operation and maintenance services to enable Gamesa to attain lead provider status vis-à-vis Iberdrola:

The power company will award Gamesa a three-year contract to service 1,748.3 MW of its G4X-650 kW and G5X-850 kW turbine systems in Spain and Portugal;

Moreover, Iberdrola will extend by one year the companies’ current contract for operation and maintenance (O&M) services on 2,312 MW of its G8X-2.0 MW wind turbines installed at wind farm plants in Spain and Portugal;

The partners will embark on new areas of research in the provision of maintenance services (O&M); management of these services in the United States, and other programmes for enhancing the reliability of wind turbines, extending their life cycle and wind turbine conversion.

In the offshore wind farm business, they will work closely together on new opportunities, including the development and eventual supply of Gamesa wind turbines to Iberdrola.

"The agreement establishes a new foundation for cooperation in response to the economic and industry environment of recent years, affords us stability and expands the framework cooperation agreement to Gamesa’s key areas of growth for coming years: supplying wind turbines, but also operation and maintenance services (O&M) and offshore, all of which the company is firmly committed to developing," said Gamesa Chairman and CEO Jorge Calvet.

Iberdrola already has around 9,000 MW of wind farm capacity from the nearly 13,500 MW it has installed worldwide using Gamesa wind turbines. Gamesa also supplies IBERDROLA with the technology for some of its most important wind projects. These include the 10 wind farms being built in Brazil with 288 MW of capacity, activities in Romania and the company’s first two wind facilities in Asturias.

Another important feature of this agreement is the maintenance contract awarded to Gamesa covering around 4,000 MW of capacity. This will cover Gamesa’s G4 and G5 models which are out of guarantee and installed in wind farms in Spain and Portugal (1,748 MW of capacity). The service contract for its G8 turbines, for a further 2,312 MW, is also extended by one year.

With renewable operations in 23 countries, Iberdrola is the world leader in its sector by both installed capacity (nearly 13,450 MW at the end of September 2011) and output (over 20,700 million kilowatts hours generated in the first nine months this year).