GE Considering $604 Million Wind Turbine Deal With Brazilian Firm

June 30, 2014 by  
Filed under Green Energy News

General Electric Company (GE) intends to produce 380MW capacity wind turbines worth 1.33 billion reais ($604 million) for a privately held Brazilian wind power producer, Casa dos Ventos.

Casa dos Ventos has already decided to acquire 230MW turbines worth 805 million reais ($364.4 million) from GE, in a move to replace Wobben Wind Power, a subsidiary of Enercon GmbH, which had been unable to fulfill its contractual obligations.

 

 

 

Casa dos Ventos has not yet confirmed acquiring additional megawatts (MW) of wind energy from GE. The additional turbines will produce 150MW of energy and cost 525 million reais ($237.7 million). However, the contract can only materialize if GE can guarantee that the project will commence operations in 2015. Alternatively, Casa dos Ventos may consider acquiring turbines from a leading Latin American producer, Industrias Metalurgicas Percarmona SA (Impsa).

The Brazilian economy has ceased to be attractive for foreign companies following new government regulations that allow for cheap loans to manufacturers using local components. Difficulty in acquiring local components and delays in complying with rules drawn up by Brazilian state development bank, BNDES, are causing increasing problems in the industry.

Orders from Casa dos Ventos will help GE’s subsidiary in Brazil to operate at full capacity in 2015 and 2016. The company will capture 24% share of the Brazilian wind turbine market by installing 900 turbines by the end of 2014, according to Bloomberg. Casa dos Ventos will be able to generate as much as 600MW from wind turbines by the end of 2018.

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