Siemens Clinches 600-Megawatt Turbine Deal With Enel

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Siemens AG (NYSE:SI) (Munich, Germany) has secured a long-term wind turbine supply agreement with Enel Green Power (EGP), the renewable energy generation arm of Italian energy major Enel SpA (BIT:ENEL) (Rome, Italy).

The deal calls for the supply of 260 onshore wind turbines with an overall capacity of 600 megawatts (MW) to a number of windfarms across Europe. There is also an option to supply another 600 MW of turbines in the future. This alliance is a blow to rival wind turbine manufacturer Vestas Wind Systems A/S (CPH:VWS) (Randers, Denmark), which signed a similar agreement with Enel in September.

The first 260 turbines will be comprised of a mix of 2.3-MW and 3.6-MW models with rotor diameters between 82 and 107 metres, which will be capable of generating enough electricity for more than 350,000 homes. Siemens is contracted to deliver the turbines between 2011 and 2014 to onshore windfarms in Italy, France, the Iberian Peninsula, Greece, Romania and Bulgaria. Siemens will handle the delivery, installation, commissioning and servicing of the wind turbines.

"Siemens is already market leader for offshore wind power," said René Umlauft, CEO of the Renewable Energy Division at Siemens Energy. "Through this agreement with Enel Green Power, we are closer to our goal of being one of the top-three suppliers in the overall market for wind power by 2012."

Siemens has been very active in the wind sector in 2010, securing an 80-turbine deal last week with Sweden's Vattenfall AB (Stockholm, Sweden) for the supply of offshore turbines to the Dantysk windfarm in the North Sea. For additional information, see October 29, 2010, article - Vattenfall Advances Dantysk Offshore Windfarm in North Sea.

In September, Enel Green Power signed a deal with Vestas for the global supply of 400 MW of turbines with an option of a further 1,000 MW. At the time, Vestas refused to name the supplier, but it has since emerged that Enel was the buyer. For additional information, see September 15, 2010, article - Vestas Closes 400-Megawatt Turbine Deal. Vestas is having financial trouble and recently announced that it is closing five turbine plants and cutting 3,000 jobs--one-eighth of its workforce--because of shrinking power demand, indecisive U.S. policies on wind energy and higher component costs.

In April, Vestas was awarded a turbine supply contract of up to 2,100 MW by the world's third-largest wind energy company, EDP Renováveis SA (ELI:EDPR) (Oviedo, Spain). For additional information, see April 30, 2010, article - Vestas Secures Wind Turbine Supply Contract from EDP Renováveis.

Enel Green Power was established in late 2008 to handle Enel's growing renewable energy business. The division is responsible for more than 4,300 MW of installed renewable energy projects, with a generation output of more than 17 billion kilowatt-hours. For additional information, see December 29, 2008, article - Enel Launches Enel Green Power Renewables Unit.

IIR's Renewable Energy Database provides extensive coverage on the wind energy, geothermal, hydroelectric, landfill gas-to-energy and utility-scale solar power plants throughout North America, and is now expanding coverage across the world.

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