The French branch of Boralex announced its plans to construct two new wind energy production sites in the mountainous French region known as the Massif Central. The 38 turbines will have a total capacity of 57 MW, bringing the company's total capacity in France to 81 MW.

France has 386 MW of installed wind energy capacity. The industry was given a boost by an electricity feed-in tariff law passed in 2001. Operators of wind energy projects receive guaranteed rates of EU€0.08 (US$0.11) per kWh for the first five years. Wind capacity in France has more than doubled since the law was passed.

Even so, France remains one of the smallest wind energy producers in Europe, far behind the 16,600 MW that the regional leader Germany has installed. In France, nuclear power makes up the majority of the energy production. The country has very limited fossil fuel resources, and meager prospects for increasing its hydropower production.

The European Union has 34,200 MW of installed wind energy capacity, and has the aggressive target of generating 22 percent of its electricity from wind by 2010.

Of the 38 new French turbines, 26 will be constructed in the province of Haute-Loire, and 12 will be located in Ardèche. The turbines have the capacity to generate 1.5 MW each under ideal wind conditions. Both sites are expected to be online by December, 2005.

Boralex owns a 95 percent stake in the project, while Perfect Wind holds the remaining five percent. The project required an investment of more than EU€83.5 million (US$110.6 million), to be financed by a major French bank. Boralex contracted with GE Wind Energy and Cégélec Sud-Ouest for the construction.

All of the output will be sold to Electricité de France (EDF) under a 15-year contract. The 30-year land lease is renewable for another 30 years at Boralex's option.

Claude Audet, president of Boralex, says his company has developed considerable expertise in wind energy and is well positioned to pursue a larger share of the wind industry in all regions of France. "The French wind sector is just getting started and shows great promise," says Audet. "The enforcement of the Kyoto Protocol last week is excellent news for the industry."

The Canadian company specializes in hydroelectric, thermal, cogeneration and wind energy. Boralex has a total installed wind capacity of 252 MW in France, Quebec and the US. In addition, Boralex manages another 190 MW of wind projects, in which it holds a 23 percent stake.

Traded companies:
Boralex (TSX: BLX.A)
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