Huge wind farm order in Brazil lost by Vestas

06/10/2014 10:38 Renewable

news

Wind turbine manufacturer Vestas Wind Energy lost an important deal in Brazil to Spanish competitor Gamesa since the Danish firm does not have the necessary local output to obtain cheap financial support for its client.

The order of 254 megawatts (MW) from CPFL Renováveis, division of CPFL Energia was annulled because of modifications in Brazil's regulations after the settlement of the agreement, as stated by Vestas on Friday - the day after Gamesa made known an order of 220 MW for the same wind farms in Rio Grande do Norte, the northeast Brazil. The shares of Vestas declined 5.5 percent on Thursday and 5.2 percent on Friday morning. According to Sydbank analyst Jacob Pedersen, the contract loss was a considerable misfortune for Vestas, but it would certainly not arouse a financial loss. Brazil has rigorous local rules whereby foreign firms are required to utilize locals, employ local contracting companies or produce locally. Emergent countries are likely to establish such rules to make sure they profit from resource expansions. But the latest changes in the rules, related to the so-called FINAME funding provided by Brazil's development bank, ruined Vestas' plans, as declared by a spokesman. Vestas mentioned in June it would make an investment of about 100 million Brazilian real ($40 million) in putting more manufacturing in the country to meet the tougher FINAME rules. Turbines with a total capacity of 686 megawatt (MW) have been installed by the Danish firm in Brazil. Gamesa, which has concentrated more on Latin America during a decline in its local market, has installed over 700 MW and signed orders for more than 2,000 MW in Brazil.

Daily (02.06.2020): The British spot gas dived by 5.6% on Monday after the resumption of Russian flows

02/06/2020 09:18:00

Crude oil futures diverged on Monday, with Brent crude for August delivery surging by 8.5% to close at $38.32 a barrel amid hopes that OPEC+ producers will meet this week, earlier than previously planned, to discuss about a further extension of output cuts. Meanwhile, U.S. WTI crude was rather stable at $35.49 a barrel, but under the effect of increasingly hostile relations between the United States and China.

<READ MORE

Biomass takes record share of UK grid in May

02/06/2020 09:03:00

Biomass-fired power took a record share of the UK generation mix for the second consecutive month in May. Overall UK power demand continued to decline as the country remained in lockdown to limit the spread of Covid-19.

READ MORE

Amazon pledges €3.75m to improve urban green spaces in Germany and Europe

02/06/2020 08:59:00

The commitment forms part of Amazon’s Climate Pledge that seeks to achieve net zero emission targets by 2040.

READ MORE