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Spain

Vestas and Enercon the big winners in 2325MW Galicia tender

SPAIN: Spain’s northernmost region of Galicia has allocated development permits totalling 2325MW to 36 companies.

The clear winners are turbine supplier Vestas of Denmark—whose 20 clients in Galicia, according to the company itself, landed 1.665 GW (71.6% of the total)—and developer gas and power utility Gas Natural Fenosa, with 339 MW.

The projects are to be built by end-2014

Vestas, which has installed 680MW in the region to date, said it presented an industrial plan earlier this year to Galicia’s regional government involving a €90 million investment in upgrading and extending its existing turbine and generator facilities in Lugo province.

The company will also set up a portside export platform in the Marin municipality of Pontevedra province and will establish new turbine and plant services centres throughout the region.

Enercon, whose Galician clients landed a total of 285MW, is the second biggest turbine supplier. Sources close to the company said Enercon would go forward with a "scaled-down version" of its "modular industrial plan".

This envisaged investing €40 million in two factories, pinned on clinching 900MW in the region. Enercon hopes to pick up further clients from among developers who received allocations without yet deciding on turbine manufacturer.

The biggest loser is Gamesa, whose clients landed just 168.5MW combined. Gamesa, already the biggest supplier to the region with 1478MW of turbines installed over the past 15 years—45% of the regional total—planned to invest €52 million in expanding regional production to include its new 2MW and 4,5MW machines.

That plan, depending on orders totalling 1200MW, targeted creating 226 new jobs. As well as client projects, this was linked to 461MW of Gamesa’s own developments, none of which were allocated permits.

Spain’s other global wind developing giants—with the exception of Gas Natural Fenosa—also lost out. Iberdrola, the biggest wind operator in the region, landed just 2MW. Other top five global operators Acciona and EDP landed just 52 MW and 3 MW respectively.

Of six companies receiving allocations for over 100 MW each, only two, Gas Natural Fenosa (339MW), and Enel Green Power (138MW), figure as large-scale national wind players.  The others are mainly local concerns, leading some of the big disappointed players to confide they are contemplating investigating the possibility of legal action on the grounds of favouritism.

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