GE joins consortium to buy Iberdrola’s wind biz

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European wind power. AP photo

General Electric said Wednesday it is part of the consortium that is buying 32 operating wind farms in France from the Spanish company Iberdrola.

MEAG — the asset management arm of Munich Re and ERGO — and EDF Energies Nouvelles joined GE Energy Financial Services in the 350 million euro, or about $463 million, deal.

This is not the first time a Connecticut-based company has bought something from Iberdrola. The Spanish company sold Southern Connecticut Gas and Connecticut Natural Gas companies to New Haven-based United Illuminating several years ago.

The portfolio of onshore wind farms, which are spread throughout France and were commissioned in 2006-2012, have a combined capacity of 321.4 megawatts using turbines from a variety of manufacturers. Electricity generated is sold according to long-term contracts under France’s feed-in tariff.

Shares if GE were up 1.53 percent to $21.31, on a day the market surged after news that the U.S. Congress actually prevented income tax increases on people making less than $400,000.

Upon completion of the transaction, subject to regulatory approval, the wind portfolio’s ownership will be: GE Energy Financial Services and MEAG at 40 percent apiece, and EDF Energies Nouvelles at 20 percent. EDF Energies Nouvelles will provide asset management and operation & maintenance services for the wind farms. The consortium envisions re-powering some of the wind farms, which feature 160 turbines, to improve their efficiency and reliability using GE technology.

Categories: Energy, GE, Wall Street
Rob Varnon

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