Iberdrola puts 59 MW of wind power in Poland into the Kyoto flexibility mechanisms

Spain's second largest utility says to be "the first Spanish company that handles Joint Implementation mechanisms to comply with the Kyoto Protocol". The windparks that the company has developed in Poland - Malbork(18 MW) and Kisielice (40,5 MW)– will enter into operation at the end of 2006 and beginning of 2007, respectively, and come from Iberdrola's 2005 acquisition of MVV Eternegy Polska, a Polish subsidiary of German wind promoter Eternegy. Together, both facilities will prevent the emission of 93,000 tonnes of CO2 into the atmosphere every year.

The JI mechanism allows to invest in projects that reduce CO2 emissions in countries going through transition-to-market periods. The national allocation plan (PNA) passed by the Spanish government to comply with Kyoto includes flexibility mechanisms which will be responsible for emission reductions equal to 7% of total.

The designated national authority (AND) has already certified that Iberdrola has capacity to carry out projects as JI. With this first step completed, Iberdrola will now carry out the following sections of the application. These include the validation of the project by an independed accredited entity (AIE), the receipt of an approval letter by the Spanish authority (AND) and the final approval of the Joint Implementation Supervision Committee (JISC).

The interest of the Spanish utility in the Polish wind market is explained by Poland's legislation that makes mandatory for trading companies to incorporate a growing share of renewable energy in their portfolios. Likewise, the growth expected is from 3.1% in 2005 to 7% in 2009. The government has established important fines for the companies that do not meet this legal requirement.

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