RWE says discussing more large wind turbine deals

LONDON (Reuters) - Germany's RWE (RWEG.DE: Quote, Profile, Research, Stock Buzz), Europe's fourth-largest utility, is discussing more agreements for bulk orders of wind turbines as it is about to sign a 1,900 megawatt contract with windfarm group REpower (RPWGn.DE: Quote, Profile, Research, Stock Buzz), a senior executive of RWE's renewable-energy arm said.

RWE aims to secure turbines as utilities throughout Europe expand into renewable energy, driving up prices of wind turbines from manufacturers such as Vestas Wind Systems (VWS.CO: Quote, Profile, Research, Stock Buzz) or Siemens (SIEGn.DE: Quote, Profile, Research, Stock Buzz).

The company said in February it had signed a memorandum of understanding with REpower for 200 onshore and 250 offshore wind turbines, with a capacity of 1,900 megawatts.

"We are getting close to closing that deal," said Kevin McCullough, Chief Operating Officer of RWE's renewable-energy unit RWE Innogy.

"We are looking at similar deals with other manufacturers," McCullough said at the Reuters Global Energy Summit in London.

Other large windfarm makers include Denmark's Vestas, the world's largest maker of windfarms, Siemens and Spain's Gamesa (GAM.MC: Quote, Profile, Research, Stock Buzz).

The head of RWE's renewable business, Fritz Vahrenholt, was previously chief executive of REpower, which is now controlled by India's Suzlon (SUZL.BO: Quote, Profile, Research, Stock Buzz), the world's fourth-largest wind-turbine maker.

RWE, Europe's largest emitter of carbon dioxide, started its renewable energy unit only in February. Competitors are further down the road, Energias de Portugal(EDP.LS: Quote, Profile, Research, Stock Buzz) (EDP), for example, has already sold a stake in its renewable-energy business.

As prices for complete wind parks have soared, RWE is seeking to acquire projects with a so-called pipeline -- approval to build a wind farm, but without actual wind turbines.

The company is also interested in wind projects Australian investment company Babcock & Brown (BNB.AX: Quote, Profile, Research, Stock Buzz) is looking to sell in Europe, McCullough said.

"There are aspects of the pipeline of Babcock & Brown that look interesting," he said.

The assets, worth as much as 4 billion euros according to German magazine Capital, will probably be broken up and sold in different parts, the executive said.

Babcock & Brown said at the end of February it would consider selling its European windfarm assets and appointed Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz) and JPMorgan (JPM.N: Quote, Profile, Research, Stock Buzz) to run the sale.

RWE is also close to taking over windfarms with a capacity of 150 megawatts in Spain, which will expand the company's foothold beyond the Catalan region in eastern Spain to the south, McCullough said, without giving more details.

(Reporting by Peter Dinkloh; Editing by Jane Merriman)