EDP buys US wind firm Horizon

London, 29 March: Portuguese power utility Energias de Portugal (EDP) is to buy Horizon Wind Energy from Goldman Sachs for at least $2.15 billion.

Horizon is a US-based wind power developer that owns 559MW of generating capacity with a further 997MW due to begin producing power by the end of 2007. This will make it the third largest owner of wind generation facilities in the US.

EDP said the acquisition would accelerate its strategy to grow its wind generation business. Including Horizon, the firm will have more than 3,800MW of wind power by the end of the year. It is also a means to enter the US wind market.

"We believe the US wind energy market has significant growth potential," said EDP chief executive Antonio Mexia.

The company said Horizon has a strong footprint in the main states with Renewable Portfolio Standards that require electric utilities to generate a certain amount of electricity from renewable sources, and it has a project pipeline of more than 9,000MW across 15 US states.

The total transaction cost will be adjusted upwards for capital expenditures, which are currently estimated at $600 million.

Goldman Sachs acquired Zilkha Renewables in March 2005 for an undisclosed sum, renaming it Horizon Wind Energy five months later.