Gamesa, the global manufacturer and developer of wind turbines and wind farms, has obtained new contracts in China to supply 197 turbines with combined capacity of 251 MW. Gamesa's wind turbine division signed the contracts with two of its largest customers in China, Guangdong Nuclear Wind Power and Datang Renewable Power, and a new customer, Henan Weite Wind Power (a mid-sized IPP, or independent power producer). The deals underscore Gamesa’s commercial strategy for expanding into new markets and customer segments.
Gamesa will supply Guangdong Nuclear Wind Power with a total of 48 units of its G90-2.0 MW turbine in 2010, representing combined capacity of 96 MW.
The agreement with Datang Renewable Power calls for Gamesa to supply 25 of its G90-2.0 MW turbines, with combined capacity of 50 MW, to the Chinese power company's wind farms in Liaoning Province.
Furthermore, Gamesa will supply Henan Weite Wind Power with a total of 124 units of its G58-850 kW turbine, representing combined capacity of 105 MW. The turbines are destined for a wind energy development known as Henan Weite Wind Power Project, funded by China Climate Change framework loan from the European Investment Bank, which will have annual capacity of 200 million kWh and will allow the Chinese company to meet the renewable energy generation targets stipulated in its five-year plan.
News of these latest contracts comes one month after Gamesa announced that it signed strategic agreements in China to develop wind farms and supply 1,315.3 MW of turbine capacity between 2010 and 2013. Those contracts were signed with Guangdong – in the provinces of Liaoning (576 MW) and Heilongjiang (450 MW) – and Datang, with which Gamesa will develop and build another 289.5 MW of wind capacity in Liaoning.
China, a strategic market
Gamesa is exhibiting at the China Wind Power Expo, the world’s largest and most prestigious wind energy trade show. The company will showcase its G8X-2.0 turbine system, which the company has manufactured in China since early this year.
Gamesa on 7 October presented its 2011-2013 Business Plan in London, forecasting a progressive return to growth, with turbine sales reaching 4,000 MW in 2013, and targeting a compound annual growth rate of more than 15%.
Gamesa forecasts growth in the world’s major wind power markets, including China, where the company expects sales to increase by an annual average of 20% in the period 2009-2013. Gamesa thus expects to double its sales in China in the period, with the country accounting for 30% of total sales in 2013 (up from 15% in 2009). Meanwhile, Gamesa plans to double its effective production capacity in China to more than 1,000 MW in 2013.
“The company’s goals include cementing its position as one of the top five players in the Chinese wind energy industry”, said Gamesa Chairman Jorge Calvet. “This requires keeping up with the pace of growth in the industry and with the needs of its customers, as a manufacturer of wind turbines, a provider of maintenance services and a wind farm developer (in conjunction with local partners) in regions of China with the greatest wind potential".
The world’s leading wind power market
Chinain 2009 cemented its position as the fastest-growing wind energy market in the world, nearly doubling its wind energy generation capacity with the rollout of 13.7 GW of wind assets. This 113% increase over 2008 brought the country’s installed capacity to 26 GW, making it the largest wind power market in the world.
Chinaoffers significant prospects for future growth, due to the size of its market, Chinese authorities' awareness of environmental and pollution problems and the launch of a renewable energy plan, which may be bolstered in China's new five-year plan, in which authorities may boost the country's initial target of 15% for renewable energy capacity for 2020.