FinanceDraft

Eolus’ 47 MW Repowered Wind Farm to be Bought by Amazon

As far as business diversification is concerned, there are very few companies which can come anywhere close to Amazon and the reason for that is the fact that the company seems to have the dogged ambition to have a bit of a presence in almost all lucrative industries. It is hardly known that the company even has a unit that is involved in space research. That being said, the news that has come as a surprise for many is the fact that Amazon (through Amazon Web Services) has struck a deal with Swedish energy company Eolus to take over one of its wind energy firms in California as part of an offtake deal. The name of the project in question is Wind Wall, and it has been reported that Eolus is now engaged in replacing all the existing 400 wind turbines with high tech equipment.

The reason behind the move is to make sure that the company is able to generate a higher volume of electricity than it did previously and hence, the deal with Amazon Web Services is a particularly important one. The wind farm in question will be fully operational by 2020, and once it starts generating electricity, all of its output is going to be sold off to Amazon. The agreement between the two companies with regards to power purchase is a long term one and needless to say, it is a beneficial one for Amazon as it provides the company with a steady supply of power at highly competitive prices.

Eolus has been in business in North American through its subsidiary Eolus North America for quite a while and deals of this nature help company working on alternative energy to invest heavily on future projects. It is possible because big-ticket companies like Amazon and their commitment to buy that energy from these companies motivate these companies to work doubly hard in order to make alternative energy become more popular. As the clamor over global warming rises, deals of this nature are only going to get more popular in the years to come.

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