The European Bank for Reconstruction and Development (EBRD) is to help Iberdrola Renovables build up its portfolio of wind power projects in Eastern Europe through a EUR125 million investment.
The Spanish renewable energy firm and the London-based development bank have already approved the collaboration, which will help Iberdrola to complete wind power projects under construction in Poland and Hungary. They will also jointly study the potential of Romania’s renewable energy market.
The collaboration represents the EBRD’s first investment in the Hungarian power sector and its first equity participation in Polish wind farms. The equity investment will help Poland and Hungary to meet their renewable energy targets, says the bank.
The deal will see the EBRD take 25 per cent stakes in Iberdrola’s subsidiaries in Poland and Hungary via two rights issues. These subsidiaries have already built 211 MW of wind power capacity and are currently constructing a further 98 MW.
The EBRD will invest a maximum of EUR75 million in the Polish subsidiary and EUR50 million in the Hungarian one. Iberdrola Renovables is already the leading wind power company in Eastern Europe.
Iberdrola Renovables is currently building two wind farms in Hungary with a total capacity of 74 MW, and also owns the country’s largest wind farm at Kisigmand with a capacity of 50 MW. It owns 160.5 MW of installed capacity in Poland through four wind farms.
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