It’s windy season in Southern Europe of late. On the back of growing demand for green energy, the money is being lavished on wind power. EDP Energias de Portugal a state-controlled utility company recently acquired Horizon Wind Energy an US-based wind farm operator.
Europe is already the world’s largest wind market. These days Southern Europe is lined up to make money on the back of growing demand for renewable wind power and the EDP-Horizon deal highlights this growing market. EDP’s bid for Horizon was well above the current market for wind power and is said to have set a trend for wind power investments. The prices of other wind farms in the US are expected to go up primarily because it’s driven more by investment climate than anything else according to HSBC analyst Angie Storozynski.
This recent purchase is expected to bring EDP’s wind capacity to 3,800 megawatts and diversify the organization’s renewables portfolio. The acquisition will make it one of the top three wind-power generators in Europe. EDP currently transmits power to around 8.9 million customers in Portugal and Brazil. The utility is still casting about for more projects despite last year’s acquisitions in neighboring Spain, Belgium and France. Wind profitability in the last five years is turning
Southern Europe into a more mature wind energy market. It is one of the fastest-growing energy industries in the world, and capacity rose 30% in the U.S. in 2006.
As an EU member state Portugal is wind driven by incentives like feed-in tariffs and green certificates. Grid operators are obliged to “feed in” from renewable energy sources at a minimum rate within their supply area; making it one of the most effective incentive systems in use here. Though EU directives are a factor for the growing market for wind in Portugal, the driving factor for EDP is wind force generates money.
