Acciona to up wind power with renewable energy branch

28th January 2008, Comments 0 comments

Acciona's new renewable energy company, due to be set up by mid-year, will be one of the leading firms in the sector in Spain.

28 January 2008

MADRID - Acciona's new renewable energy company, due to be set up by mid-year, will be one of the leading firms in the sector in Spain. Once completed, it will have an initial wind power of 5,000 megawatts and grow to 13,300 MW by next year, according to plans.

The new company is born of the combination of Acciona's existing energy assets and the ones it acquired through the takeover of Endesa.

Its creation is part of a diversification strategy by Acciona, which is already active in construction, real estate and transportation among other activities. The group, which describes itself as a pioneer in sustainable development, is also aware of the sector's potential for growth since the European Union told Spain to raise its renewable energy share to 20 percent up from the 2.5 percent it represented in 2005, as part of the fight against global warming.

Most of the energy will come from wind farms, with around 1,300 MW obtained from biomass and other renewables.

The creation of a new green company with the combined assets of Acciona and Endesa was part of the agreement reached last year by Enel and Acciona first, then these two and E.ON, during the bitter and drawn-out battle for control of Endesa. Enel and Acciona are currently the two main shareholders of the electricity company, although Germany's E.ON is set to buy part of Endesa's assets.

For now, the Entrecanales family, which controls Acciona, has no plans to go public with its new energy branch.

[Copyright EL PAÍS 2008]

Subject: Spanish news

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