The AES Corporation (NYSE:AES) today announced that it is expanding its wind generation business in the US through the acquisition of two wind farm projects totaling 186 MW from GE Energy Financial Services, a unit of General Electric. Financial terms of the transaction were not disclosed. With the addition of these two wind farms, AES will have more than 1,000 MW of wind facilities in operation or under construction in the US.
The projects include Lake Benton I, a 106.5 MW wind farm in southwestern Minnesota, and Storm Lake II, a 79.5 MW wind farm in northwestern Iowa. With an installed generation capacity of 186 MW, these two projects can support the energy needs of approximately 50,000 homes in the US.
“The global market for wind generation is expected to more than triple in size by 2015, and we see tremendous opportunities in wind,” said Ned Hall, AES President, Renewable Generation. “Through these acquisitions, AES will establish a strong presence in a region where demand for wind power is projected to continue to increase during the next few years.”
The upper Midwest region of the US is a promising area for wind projects. Both Iowa and Minnesota have set aggressive growth targets for renewable energy and require that utilities source a portion of their electricity from renewable resources, such as wind. Several neighboring states also have similar renewable energy requirements for purchases, part of which may be met through the purchase of out-of-state production.
“Wind will continue to be an important component of our overall Alternative Energy business,” said William Luraschi, AES Executive Vice President and President, Alternative Energy. “With our proven expertise in wind projects and established presence in diverse global markets, AES is well positioned to participate in future wind opportunities not only in the US, but also on a global basis.” AES’s Alternative Energy business comprises the company’s activities in wind generation, liquefied natural gas, greenhouse gas emissions offset projects and other technologies.
In addition to the projects in Minnesota and Iowa, AES also finalized an agreement to purchase an additional 4.25 MW of wind generation assets in Tehachapi, California from a California-based wind farm owner.
AES entered the wind generation business in 2004. Today, AES has more than 1,000 MW of wind projects in operation or under construction in the US and another 3,000 MW of wind projects in various stages of development throughout the world. The company’s wind development projects are located primarily in the US and Europe. AES has plans to expand its wind business to other countries where it does business, including China, India, Pakistan and Central and South America.
About AES
AES is one of the world’s largest global power companies, with 2006 revenues of $12.3 billion. With operations in 27 countries on five continents, AES’s generation and distribution facilities have the capacity to serve 100 million people worldwide. Our 13 utilities amass annual sales of over 73,000 GWh and our 121 generation facilities have the capacity to generate approximately 40,000 megawatts. Our global workforce of 32,000 people is committed to operational excellence and meeting the world’s growing power needs. To learn more about AES, please visit www.aes.com or contact AES media relations at media@aes.com.
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