Iberdrola SA, largest in wind-mill power, invests $3 Billion a year in USA
Iberdrola SA, the largest owner of wind-power generators, is investing about $3 billion a year in the U.S. as it develops more projects in the biggest electricity market, Chief Executive Jose Ignacio Sanchez Galan said. "We are very pleased about how things are going for all our businesses in the U.S.," Galan said today in an interview with Bloomberg Television at the World Economic Forum in Davos, Switzerland.
The Spanish utility is building on its $20 billion investment in the U.S. using government incentives, acquisitions and its experience developing windmills in Europe and China.
The Bilbao-based power company generates more than half its electricity outside Spain after expanding abroad to avoid relying only on its regulated domestic market. Iberdrola is carrying out a plan to sell assets worth 2.5 billion euros ($3.5 billion) following the purchases of U.S. utility Energy East Corp. in 2008 and Scottish Power Ltd. in the U.K. in 2007.
Iberdrola Renovables SA, the utility's renewable-energy unit, said on Oct. 20 it had won $546 million in U.S. grants for renewable-energy projects and forecast it would get about $430 million in 2010. President Barack Obama has set a goal of doubling U.S. renewable energy by 2012.
FPL Group Inc. and BP Plc led a record 9,900 megawatts of wind-power installations in the U.S. last year as a federal stimulus package increased incentives for renewable-energy investment, the Washington-based American Wind Energy Association said on Jan. 26.
EDP-Energias de Portugal SA, the biggest power company in Portugal, said on Nov. 18 that it will spend $4 billion through 2012 on new wind farms in the U.S.
Texas, Iowa and California have the most wind-power capacity in the U.S., which leads the world with more than 35,000 megawatts, or enough for about 9.7 million homes, the American Wind Energy Association said.
Iberdrola's installed capacity totals 44,242 megawatts, of which gas-fired plants account for 30 percent, renewable energy 24 percent and hydropower plants 22 percent. The Iberdrola Renovables unit estimates it will increase its installed capacity to 12,500 megawatts by the end of this year. Iberdrola shares have dropped 6 percent this year, valuing the company at 32.8 billion euros.