Siemens to Supply Turbines to St. Joseph's Windfarm in Manitoba for Pattern Energy

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Researched by Industrial Info Resources (Sugar Land, Texas)--Siemens Canada Limited (Mississauga, Ontario), the Canadian arm of the German electronics and electrical engineering company Siemens AG (NYSE:SI) (Munich, Germany), has announced a second order from the Pattern Energy Group (San Francisco, California) for wind turbines.

Following a previous order for Pattern Energy's Hatchet Ridge windfarm, Siemens has been awarded an order to supply 60 of its 2.3-megawatt (MW), SWT-2.3-101 wind turbines for the St. Joseph Windfarm, which will be constructed outside Morris, Manitoba.

Under the terms of the order, Siemens will supply the wind turbines, as well as the technical assistance for erecting and commissioning the turbines. The company also will provide service and maintenance for two years.

The St. Joseph Windfarm will have a total generating capacity of 138 MW, sufficient to supply power to 50,000 homes in the area. Construction of the windfarm is expected to begin in September this year and to be completed by the end of the year.

Pattern Energy recently announced that it had signed a 27-year power purchase agreement with the Manitoba Hydro-Electric Board (Winnipeg, Manitoba) covering the sale of electricity produced from the St. Joseph Windfarm.

Siemens previously collaborated with Pattern Energy when it supplied 44 of its 2.3-MW, SWT-2.3-93 model turbines for the 101.2-MW Hatchet Ridge windfarm project in California, which is scheduled to be completed in the autumn of this year. As with the St. Joseph Windfarm, Siemens will provide service and maintenance for two years.

Siemens has enjoyed success in Ontario recently, with a total supply order for 196 of the 2.3-MW wind turbines scheduled to be installed by the end of 2010. This includes 86 turbines at the 197.8-MW Wolfe Island windfarm near Kingston for TransAlta Corporation (NYSE:TAC) (Calgary, Alberta), and 44 turbines each at the Port Alma and Chatham windfarms for Kruger Energy, a subsidiary of Kruger Incorporated (Montreal, Quebec).

Canada had a total wind power generating capacity of 2,369 MW as of January 2009, which has grown to 3,426 MW. Canada's target for wind generating capacity is 15,000 MW by 2020, and Siemens is positioned to make a significant contribution to this growth. However, it will face competition from other major wind turbine manufacturers.

Competition is likely to come from companies such as General Electric (NYSE:GE) (Fairfield, Connecticut), which has a range of wind turbines, and Enercon GmbH (Aurich, Germany), which already has a substantial base of wind turbines installed at windfarms such as the 102-MW Bear Mountain windfarm and the 76-MW Ripley Wind Power Project.

The world's largest wind turbine manufacturer, Vestas Wind Systems (OMX:VWS) (Randers, Denmark), is also well-represented in Canada, with projects such as the 75-MW McBride Lake windfarm and the 68-MW Summerview windfarm.

The location of a windfarm is critical to the economic success of the project. If the site is not close to existing transmission lines, the costs involved in building the required connections from the windfarm to the national grid may have an adverse effect on the overall viability of the project.

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