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Gamesa Strengthens Its Brazilian Presence by Landing a New Contract to Supply 258 MW

published: 2012-09-14 15:00

The company will install 129 of its G97-2.0 MW turbines at 10 wind farms which Santa Vitória do Palmar Holding is set to develop in southern Brazil and will perform operation and maintenance (O&M) services on the machines for 20 years

It is the first contract signed with a subsidiary of the country’s national power company (Eletrobras), which accounts for 36% of Brazil’s electricity

One year after it began manufacturing turbines in Brazil, Gamesa has won contracts totalling 652 MW in three of the country's most promising wind power regions

Gamesa, a global technology leader in the wind energy business, has signed a contract to deliver turbines with combined capacity of 258 MW for 10 wind farms which Santa Vitória do Palmar Holding -made up of investment fund Río Bravo Energía I and Eletrosul (a subsidiary of national power company Eletrobras)- will develop in the state of Río Grande do Sul in southern Brazil.

The agreement calls for Gamesa to supply and install a total of 129 of its G97-2.0 MW turbines and perform operation and maintenance (O&M) services on the machines for a period of 20 years. Gamesa plans to begin installing the turbines late in the first half of 2013 and complete the process in the first quarter of 2014.

The value of the transaction is 843 million Brazilian reais (340 million euros, approximately, according to the current currency change).

The wind farms' construction will generate more than 1,500 jobs, both direct and indirect. When they are all in operation, the 10 wind farms will generate around 957,000 MWh of electricity per year, enough to meet the annual energy needs of 510,000 Brazilian households. Moreover, the sites will prevent atmospheric annual emissions equivalent to 370,000 tonnes of CO2 per year.

Supplying 652 MW in three of Brazil's most promising states for wind energy

A little over a year since it began manufacturing turbines in Brazil, Gamesa has cemented its presence in the country's wind energy market. It has obtained contracts in recent months to supply a total of 652 MW of turbine capacity to projects under development in three of the country's most wind-rich regions: Ceará, Bahía and Río Grande do Sul.  

The latest contract is a significant milestone for the company for several reasons, not only due to the project's size - it is one of Brazil's largest-ever orders for wind turbines - but also because it is the first contract signed with a subsidiary of the country's national power company, which accounts for 36% of Brazil's electricity, and operating in Brazil, Uruguay, Peru, Nicaragua, Argentina and Venezuela.

"This order underscores Gamesa's commitment to the Brazilian wind market, which has priority status in our global development plans", said Edgard Corrochano, Gamesa's Mercosur Regional Director. We continue to make progress in Brazil with a business strategy combining our global leadership with local know-how; the cementing of our position as a leading and competitive manufacturer in terms of cost, flexibility and reliability; and a commitment to community development as illustrated by job and wealth creation, with purchases from and alliances with local suppliers."

Ronaldo dos Santos Custódio, Director of Engineering and Operations Eletrosul, commented "This project consolidates Eletrosul as a major player in the wind sector and establishes a strong and committed relationship with Gamesa."

The Southern Cone and LATAM, drivers of Gamesa's growth

Several months after beginning marketing activities, in July 2011 Gamesa began manufacturing wind turbines at its factory in Camaçari, in Brazil's Bahía state, the operational hub of its expansion strategy in the Mercosur region. The company has since landed several supply contracts from

leading wind farm developers in north-eastern and southern Brazil and has worked to find and cultivate a significant local supply chain.   

Latin American nations, namely Southern Cone countries, have become key markets driving Gamesa's business in recent months. Indeed, these countries accounted for 40% of Gamesa's total sales as of June 2012. Gamesa currently has a presence in Brazil, Mexico, Uruguay, Nicaragua and the Dominican Republic.

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