AES Expands Wind Energy Business into Europe; Acquires Majority Ownership of UK-Based Wind Development Company
ARLINGTON, Va.--(BUSINESS WIRE)--July 5, 2006--The AES Corporation (NYSE:AES) today announced that it has acquired majority control of the Wind Energy Ltd. (WEL) group companies, a UK-based wind development company, with 640 MW of wind generation projects under development throughout Scotland. Terms of the transaction were not disclosed.
"This acquisition is the first expansion of AES's wind energy business into Europe and represents a strategic step in our efforts to become a leader in wind generation development and operation worldwide," said William Luraschi, AES Executive Vice President of Business Development. "Growing our wind energy business is a key component of our expansion into alternative energy. With global installed wind generation capacity expected to more than double over the next five years, we see tremendous growth opportunities in wind and we will continue to seek expansion projects worldwide."
"Through this transaction, AES gains a portfolio of wind projects in a market that has huge potential for growth," said Ned Hall, AES Vice President of Wind Generation. "The UK has one of the fastest growing and most attractive wind energy markets in Europe, where installed capacity is expected to increase fivefold over the next four years. In addition, Scotland enjoys some of the highest wind resources in the world, which allows for particularly efficient wind power generation. That's just the type of opportunity we're looking for globally."
AES has been in the wind generation business since 2004 and currently operates 600 MW of wind facilities. On April 17, 2006, the company announced plans to triple its investment in wind generation over the next three years, and currently is pursuing an additional 2,000 MW of wind projects in development, primarily in the United States. AES also said it is currently evaluating wind power projects in continental Europe, China, India and Central and South America, with an emphasis on countries with existing AES businesses.
AES has operated generation businesses in the United Kingdom since 1992, when it acquired AES Kilroot, a 520 MW coal-, oil- and biomass-fired power plant in Northern Ireland. AES also owns and operates AES Indian Queens, a 140 MW oil-fired plant in England.
Founded in 2002, WEL is a privately held company engaged solely in the development of wind power projects in Scotland. As part of this transaction, the WEL group is being restructured with AES taking a controlling interest in each of the group companies.
About AES
AES is one of the world's largest global power companies, with 2005 revenues of $11.1 billion. With operations in 26 countries on five continents, AES's generation and distribution facilities have the capacity to serve 100 million people worldwide. Our 14 regulated utilities amassed 2005 annual sales of over 82,000 GWh and our 127 generation facilities have the capacity to generate over 44,000 megawatts. Our global workforce of 30,000 people is committed to operational excellence and meeting the world's growing power needs. To learn more about AES, please visit www.aes.com or contact AES media relations at media@aes.com.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES's current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, continued normal levels of operating performance and electricity demand at our distribution companies and operational performance at our contract generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience. Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES's filings with the Securities and Exchange Commission, including, but not limited to, the risks discussed under Item 1A "Risk Factors" in AES's 2005 Annual Report on Form 10-K. Readers are encouraged to read AES's filings to learn more about the risk factors associated with AES's business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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