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ERRM: Tighter and tighter

01 December 2005

Read more: [spain wind]

Iberdrola's Eu217 million financing of a 199MW windfarm portfolio in Murcia has set a new benchmark for ever tightening margins on Spanish wind deals.

The project company, Energias Renovables de la Region de Murcia (ERRM), is 50%-owned by Iberdrola, Spain's second largest energy utility, with a 50% equity stake accruing to mainly local groups from the Murcia region in south-east Spain. These groups are: Caja Murcia, Inversiones y Proyectos 3, Grupo Fuertes, Energia Hidroelectrica de Navarra and Instituto de Fomento de Murcia.

The farms are part of a concession from Murcia's regional government. The portfolio will eventually consist of 10 windfarms, three of which are already operational with a further seven to be built between now and 2008. Current operational capacity is 42MW – the plan being to increase this to 139MW by the end of 2006 and 199MW by the end of 2008.

The debt portion of the financing...


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