BRAZIL WIND GOES TO GE

GE beats local rivals to Brazilian wind turbine contracts
Stephan Nielsen, May 19, 2011 (Bloomberg News via NewsTimes)

"General Electric Co…[which] began producing wind equipment in Brazil in 2009, has won the biggest share of the country's turbine contracts, beating companies that have had operations there for more than a decade.

"GE will supply about 22 percent of the turbines to be installed at wind parks that received power-purchase contracts in auctions for new renewable energy over the last two years. The projects will have total capacity of 3.9 gigawatts."

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"The company's ability to manufacture in high volume have helped it offer competitive prices and land orders, according to Marcelo Prado, GE's director of marketing for Latin America…

"Brazil's second-largest turbine supplier is Argentina's Industrias Metalurgicas Pescarmona SA, with 20 percent of the contracts, followed by Wobben Windpower Ind e Com Ltda., with 14 percent…Wobben, the Brazilian subsidiary of German wind turbine manufacturer Enercon GmbH, has been manufacturing equipment in the country for more than 15 years…"

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"GE's turbines, amounting to 844 megawatts of capacity, will cost about $1.4 billion, Prado said, or about $1.66 million a megawatt…GE may expand its manufacturing capacity… depending on how many additional orders it receives, and it will consider locations [closer to wind resources in Brazil’s northeast]…

"Prado said GE expects to capture more of the market in two power auctions scheduled for July…[Its target is 30 percent of the contracts and an investment of] $500 million in Brazil through 2013…"