New York, NY, Nov. 10, 2005 — ENDESA has signed an agreement with the China Huaneng Group, China’s largest electric utility, to acquire Emission Reduction Certificates (ERCs) from the three wind farms owned by its subsidiary Huaneng New Energy Industrial Co Ltd (HNEIC).
The wind farms, which are located in the province of Guangdong, have a joint capacity of 195 MW and will start operating in 2006 and 2007. They will generate 2.6 million tons of ERCs through to 2012.
The process began in July when ENDESA was invited to bid for the ERCs. The company was named a finalist after the first round. The China Huaneng Group chose ENDESA as the purchaser of the ERCs of its wind farms as it envisaged the two companies entering into future technological cooperation agreements.
These newly-acquired emissions reductions will allow ENDESA to meet its CO2 emission commitments for its operations in Spain, Portugal, France and Italy, included in the Directive on Emissions Trading.
ENDESA is the first private company to launch a global CO2 emissions rights purchasing initiative. The target is to purchase 15 million CO2 emissions rights through to 2012 via the mechanisms provided for in the Joint Application Clean Development Mechanisms contained in the Kyoto Treaty.
To this end, the Company is planning to set up workshops worldwide with the purpose of explaining the contracting procedures and agreements necessary to carry out the rights trading. The five-step process for reducing CO2 rights on behalf of ENDESA starts with project analysis and culminates in the signing of a CO2 emission rights contract between the company and the project developer.
ENDESA’s Spanish facilities slashed CO2 emissions by 27.5% between 1990 and 2004, while doubling their output during the same period. ENDESA expects its specific CO2 emissions to be 35% lower in 2007 compared to 1990.
The agreement with the China Huaneng Group includes emissions reductions equivalent to 2.6 million tons generated by three wind farms which, in 2006 and 2007, will have installed capacity of 195 MW.