GE Energy Signs Agreement With EDP To Supply 500MW Of Wind Turbines Projects In Europe; U.S. Will Be Developed in 2008-2009

October 28, 2007 by Jeff Shepard

GE Energy has signed a global frame agreement with the renewable area of EDP – Energias de Portugal, SA (described as the world’s fourth largest wind project developer) to supply wind turbines totaling more than 500MW of new capacity for wind projects to be developed during 2008 and 2009 in Europe and the United States. Total value of the agreement will be $730 million, bringing GE Energy’s recent wind turbine order announcements to more than $1 billion.

Under the frame agreement with EDP, GE will supply Neo Energia, the European renewable branch of EDP, with 80 2.5xl wind turbines for new wind projects in Europe. GE will also provide Horizon Wind Energy LLC, EDP’s American branch, with 201 1.5MW wind turbines for projects in the United States, at sites yet to be determined. EDP purchased Horizon (based in Houston, Texas) earlier this month, as part of an expansion into the North American wind energy industry.

"In the U.S. and around the world, we continue to see strong interest in the production of cleaner, wind-generated electricity," said Victor Abate, Vice President-Renewables for GE Energy. "In the U.S. alone, more than 2,400 megawatts of new wind power was installed in 2006 while worldwide, more than 15,000 megawatts were installed, according to the Global Wind Energy Council. EDP is committed to expanding its wind energy portfolio to help to meet the growing global demand, and we are very pleased that our technology has been selected to support this effort."

According to Antonio Mexia, CEO of EDP, "This frame agreement with GE nearly completes EDP’s wind turbine needs until 2009, which is particularly important for the success of our upcoming projects, given the high demand for wind turbines in today’s market. EDP promised the wind industry we would deliver and this is an important step to achieve the goals announced in terms of built megawatts per year."

The European phase of the frame agreement represents GE’s largest supply of 2.5xl wind turbines to date. Introduced last year, the 2.5xl is the largest GE wind turbine for onshore applications and is designed to meet the immediate requirements of the European Union, where the lack of available land constrains the size of projects. Sixty-six of the 2.5xl units will be provided for new wind farms in Spain. These projects are owned by the wind farm developer Neo Energia, EDP’s platform for Europe, which accounts for about 14% of the Iberian wind market.

All of the U.S. projects will be owned by EDP-owned Horizon Wind Energy or affiliates. Sixty-seven of the GE wind turbines for the U.S. projects and 30 turbines for the European projects are expected to be commissioned before the end of 2008.