European power companies breeze into the U.S. wind farm business

European power companies breeze into the U.S. wind farm business

By Peter Maloney
Tuesday, November 6, 2007

NEW YORK: The European Union has taken the lead on many climate change issues - from ratifying the Kyoto Protocol to passing laws to require and encourage the development of renewable energy. Why, then, are so many European energy companies looking to invest in the United States?

For António Mexia, the chief executive of Energías de Portugal, the answer is simple. "The United States is the fastest-growing market in the world for wind power," he said. "If we want to be a leader, we have to be here."

In July, Energías paid nearly $3 billion to buy Horizon Wind Energy from Goldman Sachs. The purchase, Mexia's first foray into the United States, doubled the amount of wind power in Energías's portfolio, giving the once sleepy Portuguese utility the fourth-largest wind-farm capacity in the world, behind Iberdrola of Spain, FPL Energy - an affiliate of Florida Power and & Light in the United States - and another Spanish company, Acciona Energía.

All the biggest players in wind power are focused on the United States.

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