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French firm signs €1bn wind power contract in Brazil

Alstom and Renova Energia form a preliminary agreement in Brazil for the supply of 440 wind turbines

Alstom will supply, operate and maintain around 440 onshore wind turbines for a total amount exceeding €1bn

French firm Alstom has signed a €1bn memorandum of understanding with Renova Energia, leader in wind power generation in Brazil. The company will supply, operate and maintain around 440 onshore wind turbines in the BRIC country for a total amount exceeding €1bn.

From 2.7MW to 3MW each, the turbines will represent a minimum of 1,200MW new wind power generation capacity. They will equip Renova’s wind farms in the state of Bahia and will be delivered from 2015 onwards, over an estimated period of three to four years.

Alstom’s ECO 100 3MW onshore wind turbine range was selected as one of the most proven machines on the market, with turbines running since 2008. It offers high yield and leading efficiency across all wind classes, with its rotor diameter from 100m to 122m. This allows developers to select the best rotor for every position. The combination of two or even three models of the range (ECO 100, 110 or 122) within the same wind site optimises the capacity factor of a project while reducing the balance-of-plant cost.

Renova Energia carried out a thorough process for the selection of the manufacturer, using “clean sheet” cost assessment model and comparative analysis.

“Alstom presented the best combination of price and technical performance, allowing for greater competitiveness in our projects”, said Mathias Becker, CEO of Renova Energia. “This will allow for increased efficiency of our plants, as we will have a more adequate technology to our winds, and reduced investments, which are key for us to maintain our leadership position in the increasingly competitive wind market”, he adds.

The partnership between both companies will start with the selection of the most appropriate technology in Alstom’s portfolio for each Renova’s plant. This phase will last approximately two years. Due to the importance of the project, the company said a governance committee will be created, composed of members of the top management of both companies, who will follow up on the execution of the agreement.

Jérôme Pécresse, president of Alstom Renewable Power, said: “The partnership with Renova Energia has exclusive aspects, and we want to closely follow up on the progress. As the most important agreement for Alstom in the wind onshore industry worldwide, this preliminary agreement confirms our strong global ambitions in the wind industry.”

The wind turbines will be manufactured at Alstom’s unit in Camaçari, state of Bahia. Opened in November 2011, the plant has a manufacturing capacity of 300MW a year. The agreement with Renova Energia confirms Alstom’s decision to work with two shifts from the first half of 2013, increasing the manufacturing capacity to 600MW a year. Alstom will work towards the establishment of a wind cluster in Bahia in partnership with other companies, for the production of the main components of the turbines.