Bloomberg News

Iberdrola Sells Polish Wind Unit for $264 Million to PGE, Energa

February 26, 2013

PGE SA (PGE), Poland’s largest power producer, and Energa SA will buy wind assets in the country from Iberdrola SA (IBE) for 840 million zloty ($264 million) after striking a deal for Dong Energy A/S’s Polish wind unit one week ago.

PGE will acquire three Polish wind farms with a 70.5 megawatt capacity, the Warsaw-based company said in an e-mailed statement today. Energa, based in Gdansk, will get 114 megawatts of wind farms located in Pomorskie and Zachodniopomorskie regions in northern Poland, according to another filing.

PGE is seeking to increase its wind capacity more than sevenfold in four years to replace aging power stations with cleaner sources as Poland aims to get 15 percent of its energy from renewables by 2020, compared with about 2.5 percent now. Spanish utility Iberdrola said in December it would sell wind- power units in France, Germany and Poland as part of a plan to divest 2 billion euros ($2.61 billion) of assets before 2015 to curb debt.

PGE and Energa agreed to buy 75 percent of Iberdrola Renewables Polska and plan to purchase remaining stake from the European Bank for Reconstruction and Development later, the companies said in separate statements today. Iberdrola has sold 1.1 billion euros of wind farms in Europe after today’s deal, the Spanish utility said in an e-mailed statement.

PGE, which along with Energa agreed Feb. 19 to buy the Polish wind business of Denmark’s biggest utility Dong for 1 billion zloty, said that today’s deal will also include wind farm projects under development, according to the statement. Wind capacity in Poland, which relies on coal for about 90 percent of its electricity, grew 55 percent last year to 2.5 gigawatts, according to the energy market regulator.

Morgan Stanley (MS:US) advised Energa, while Banco Santander SA’s Bank Zachodni WBK SA (BZW) was PGE’s adviser.

To contact the reporter on this story: Sally Bakewell in London at sbakewell1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


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