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CIP and GE Vernova Sign EUR 700 Million Agreement for Teruel Wind Project

The deal includes the delivery, installation, and commissioning of 125 GE Vernova 6.1-158 wind turbines, alongside a 15-year full-service contract.

May 30, 2024. By Abha Rustagi

Copenhagen Infrastructure Partners (CIP) and GE Vernova's Onshore Wind division have announced the signing of an agreement worth over EUR 700 million for the Teruel wind project.

The deal includes the delivery, installation, and commissioning of 125 GE Vernova 6.1-158 wind turbines, alongside a 15-year full-service contract. This project, anticipated to commence construction shortly, will establish the largest wind farm in Spain with a combined capacity of approximately 760 MW, aiming to significantly contribute to Spain's energy transition and reduce CO2 emissions by an estimated 320,000 tonnes annually.

Raji George, Director-Corporate Finance at Sterlite Power, commented, “We are pleased to conclude the financial deal for one of our largest GEC projects with one of India’s largest and most reputed financial institutions in the power sector–PFC. This deal is a show of trust by PFC in our capability to deliver some of the most challenging and impactful transmission projects in the country.”

The total investment for the construction of the Teruel wind farm is projected to be around EUR 1 billion, with an additional EUR 1.4 billion allocated for operation and maintenance over the project's lifespan, according to an independent socioeconomic impact report.

GE Vernova booked this substantial order in Q4 of 2023, marking one of Spain's largest wind project contracts to date. The project will leverage GE Vernova's established presence in Spain, including its engineering center of excellence in Barcelona and production facilities in Les Coves de Vinromà, Castellón, where the turbine blades will be manufactured.

The wind turbine towers will be produced in plants located in Albacete, Burgos, and Galicia. This agreement builds on previous contracts through which GE Vernova has supplied 490 MW to CIP for onshore wind power in Aragon.

Vic Abate, CEO of GE Vernova Wind, stated, "We are delighted to be able to again support CIP in its goals to bring more wind power online to meet Spain's ambitious renewable energy targets and continue to contribute to the Spanish wind industry. This agreement reinforces how we can use our workhorse product strategy to provide our customers with proven technology that enables them to build high-quality, high-performance fleets at scale to meet the demands of the energy transition."

Nischal Agarwal, partner at CIP, added, "The Maestrazgo cluster is expected to have a very positive socio-economic impact on job creation and on the Aragonese and Valencian economy, but also on the value chain of the entire Spanish wind industry. The expected impact of investment and job creation figures make the Teruel project a benchmark for the sector in Europe."

The Teruel project, pending Administrative Authorisation for Construction (AAC), is a cornerstone of CIP's renewable energy portfolio in Spain. The Spanish Ministry for Ecological Transition and Demographic Challenge (MITECO) has increased its wind power target to 62 GW by 2030, up from 50 GW, as part of a broader strategy to boost renewable energy generation. The Teruel wind farm is expected to support over 3,540 jobs, generate around EUR 400 million in taxes, and supply electricity to approximately 570,000 homes annually.

GE Vernova's onshore wind division, with over 56,000 turbines and nearly 120 GW of installed capacity worldwide, continues to lead with its high-power, next-generation technology, advancing decarbonization efforts globally.

Tags:

Business

CIP

Copenhagen Infrastructure Partners

GE Vernova

Teruel wind project

Spain's energy transition