E.ON buys Spanish wind farm company Energi E2 Renovables Ibericas

09 August 2007

German power utility E.ON AG has said that it is acquiring the Madrid-based Energi E2 Renovables Ibericas, which operates wind farms in Spain and Portugal, from Denmark''s Dong Energy in a deal worth €722 million, or $997, including €256 million in net debt.

The Spanish company produces power in Spain and Portugal with a net operating capacity of around 260 MW, generated mainly through wind farms, smaller hydropower and biomass plants. It plans to add another 560 MW from wind farms in the next four years.

The acquisition will boost E.ON ''s wind power capacity to about 700 megawatts.

Wulf Bernotat, chief executive, said, "Energi E2 Renovables Ibericas ideally supplements our future activities in Spain. Wind power will play an important role in our future energy mix."

E.ON said it will invest €3 billion in renewable energy by 2010, of which the acquisition of E2-I is the first step. Its alternative power plans include offshore wind power projects and setting up the world''s largest wind farm at the Thames estuary in the UK, with around 1,000 megawatts of capacity.

On Monday, the European Union had approved the Dusseldorf-based E.ON ''s bid to buy Spain''s power utility Viesgo from Enel SpA and also acquire additional generation capacity from Endesa SA, making it the fourth-largest power producer in the Spanish power market.