Projects In Europe, U.S. Will Be Developed in 2008-2009
ATLANTA, GEORGIA - October 23, 2007 - GE Energy has signed a global frame agreement with the renewable area of EDP - Energias de Portugal, SA, the world's fourth largest wind project developer, to supply wind turbines totaling more than 500 megawatts 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:
o Supply Neo Energia, the European renewable branch of EDP, with 80 2.5xl wind turbines for new wind projects in Europe
o Provide Horizon Wind Energy LLC, EDP's American branch, with 201 1.5-megawatt wind turbines for projects in the United States, at sites yet to be determined. EDP, Portugal's largest power group, purchased Houston-based Horizon 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."
He added, "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 Mr. 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.
The wind industry is well established in Iberia. According to the European Wind Energy Association, Spain had 11,615 megawatts of installed wind capacity at the beginning of 2007, ranking third in the world behind Germany and the United States, while Portugal had 1,716 megawatts.
Fourteen of the GE 2.5xl machines will be supplied for a new wind farm located in Belgium, also belonging to an affiliate of Neo Energia.
Interest in wind energy continues to grow in Belgium, which had 188 megawatts of installed wind capacity at the start of 2007 compared to 45 five years ago.
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.
EDP is a vertically integrated utility active in the electricity and gas industries across the entire value chain - generation, distribution and supply - in Portugal, Spain, and Brazil with a current market cap of about $20 billion. Based in Portugal, EDP is one of the largest integrated Iberian utilities and one of the leading generators of electricity from renewable sources globally. In Portugal and Spain EDP has over 13,500 megawatts of installed generation capacity and up to seven million customers. EDP also has significant investments in energy generation and distribution assets in Brazil where it holds 62% of Energias do Brasil, a company with a market capitalization of about $3 billion. In the renewables business, EDP currently owns over 1,700 megawatts of operating energy capacity in Iberia and France, with 3,000 megawatts expected to be installed or in construction by the end of 2008.
About GE Energy
GE Energy (www.ge.com/energy) is one of the world's leading suppliers of power generation and energy delivery technologies, with 2006 revenue of $19 billion. Based in Atlanta, Georgia, GE Energy works in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels. Numerous GE Energy products are certified under ecomagination, GE's corporate-wide initiative to aggressively bring to market new technologies that will help customers meet pressing environmental challenges.
With wind turbine design, manufacturing and assembly facilities in Germany, Spain, China, Canada and the United States, GE Energy is among the leading providers of wind energy products and support services ranging from commercial wind turbines and grid integration products to project development assistance and operation and maintenance. The company's knowledge base includes the development and/or installation of more than 7,500 wind turbines with a total rated output of more than 9,800 megawatts.
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