Infigen And Gamesa Enter 15-Year Long-Term Services Agreements

DALLAS and TREVOSE, Pa., June 16, 2013 /PRNewswire/ -- Infigen Energy (Infigen) and Gamesa Wind US LLC (Gamesa) today announced that they have settled all outstanding legal proceedings related to Gamesa-manufactured turbines purchased by Infigen. Five of the U.S. wind farm project companies (U.S. project companies) in which Infigen holds Class B membership interests have each executed 15-year Warranty and Maintenance Agreements (WMA) with Gamesa for a fixed annual fee.

Under the agreements, Gamesa will provide warranties, turbine maintenance services and replacement components for the turbines until June 14, 2028.

Key features of the WMAs:

• Gamesa will be responsible for all turbine maintenance costs including labor, cost of all wind turbine component replacements, including blades (subject to agreed liability caps) for an annual fixed fee;
• Gamesa will provide turbine availability warranties; and
• Gamesa will be entitled to certain performance payments if turbine availability exceeds prescribed levels.

As a result of these arrangements, Infigen Asset Management will cease to provide turbine maintenance services to these five U.S. Project Companies, but will continue to operate the wind farms and provide Balance of Plant service and maintenance. 

Following these agreements, more than 60 percent of Infigen's U.S. installed capacity (on an equity interest basis) will be covered by post-warranty agreements.

"These agreements enable Infigen to manage the level and variability of our wind farm costs and focus on safely and efficiently operating these assets," said Craig Carson, Infigen U.S. CEO. "Infigen has a large portfolio of renewable energy assets across the United States, and we look forward to continuing to focus on the performance of all of our facilities as we work toward realizing new opportunities in renewable energy across the country."

Borja Negro, Gamesa's CEO for North America said: "Gamesa remains committed to helping our customers meet and exceed their power production goals by ensuring the turbines are reliable and well maintained.  This agreement came about by working closely with Infigen, finding common ground, and addressing their long-term service needs. The overall impact will be to increase turbine optimization, reduce risk, generate cost savings and enhance profitability for Infigen. " 

Details of the affected wind farms and Infigen Energy's interest in them are attached in the Appendix.

About Infigen Energy

Infigen Energy is a specialist renewable energy business. We have interests in 24 wind farms across the United States and Australia. With a total installed capacity in excess of 1,600 MW (on an equity interest basis), we currently generate enough renewable energy per year to power more than 500,000 households. Infigen is listed on the Australian Securities Exchange (ASX). Infigen's website is www.infigenenergy.com.

About Gamesa Wind

Gamesa Technology Corp., Inc., (www.gamesacorp.com/en/) a global leader in the design, manufacture, installation and maintenance of wind turbine generators and the turnkey development and sale of wind farms, has installed more than 27 GW MW in 40 countries on five continents. The company has over 19,000 MW under operation and maintenance service contracts globally, with more than 2,300 MW in the United States. With two plants in Pennsylvania, Gamesa was the first overseas wind manufacturer to set up full production facilities in the United States.  In addition to providing turbines to the U.S. customers,  Gamesa exports  its Pennsylvania manufactured wind turbines to Canada, Mexico, and Central and South America  As part of its global Corporate University program, Gamesa operates a U.S. training center in cooperation with Bucks County Community College, where the company provides continuing education to existing employees and offers customers and others training in wind technology.

Appendix

Infigen has interests in 18 wind farms in the United States with an equity interest in that portfolio of 1,089 MW. Details of the five wind farms that use Gamesa turbines are set out below.

SOURCE Infigen Energy