viernes, agosto 10, 2007

UNITED KINGDOM: International Power In With The Wind

British energy supplier International Power has taken a leap into the wind power super league–a sector that has thrived in Europe, thanks to concerns about global warming, the supply of oil, and the continent’s increasing dependence on Russia for its gas supplies.

International Power agreed to buy Trinergy, which has wind farm projects in Italy and Germany for 868 million euros ($1.2 billion) over the weekend, making it one of the world’s largest producers of wind energy. The news was welcomed by the markets, on an otherwise gloomy day. Its shares topped the gainers in early afternoon trading in London, rising 14.50 pence (30 cents), or 3.4%, to £4.41 ($8.96).

Trinergy is being acquired from private investors linked to the Matrix Group and CJS Capital Partners, and is being funded through the acquisition of £202 million ($410.2 million) in debt, and the company’s own liquid resources.

The market thumbs up reflects confidence in International Power’s decision to firm up its foothold in Europe’s wind power sector, which has been growing rapidly. Last year the wind power capacity in the European Union increased by 19.0%, and is expected to continue to grow, boosted by a new European Commission commitment. In March an agreement by European Union governments committed their countries to binding targets to ensure that 20.0% of all energy will come from renewable sources by 2020.

The acquisition fits snuggly with International Power’s strategy of increasing its presence in the renewables sector. Last November, the company bought Levanto, which has operations in France and Germany. After the acquisition of Trinergy is complete, International Power will have a total operational capacity of 1,013 megawatts, and an additional 117 mega watts under construction.

Trinergy has its strongest presence in Italy; its German division accounts for just 14.8% of its total current 581 megawatt capacity. 67 megawatts of additional capacity are currently under construction in Italy.

Germany and Spain are currently the largest wind energy markets in Europe, but the Italian market is expected to grow rapidly, thanks to a favorable regulatory environment.

"Both Italy and Germany are attractive markets with significant growth targets for renewable generation, supported by clear regulatory frameworks," said International Power's Chief Executive Philip Cox.

Analysts expect the company to continue expanding its presence in the industry, including possibly in Britain. The world's largest wind energy company Iberdrola , acquired Scottish Power for 17.1 billion euros (23.6 billion).
Via: Forbes
by Vidya Ram

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