Vestas' 254MW Brazil order cancelled

BRAZIL: The 254MW order for Vestas turbines from developer CPFL Renovaveis has been cancelled due to regulatory changes in the country.

Vestas was due to supply 127 V100-2MW turbines to CPFL Renovaveis

Vestas confirmed it has stopped the delivery of 127 V100-2MW turbines to the Campos dos Ventos and Sao Benedito projects in northeast Brazil.

The Danish turbine manufacturer said it was changes to Brazilian legislation in 2013, two years after the contract was agreed in 2011. It said this resulted in the companies to agreeing to "amicably" cancel the deal.

It is believed some of the regulation affects BNDES local sourcing requirements.

The orders are believed to have gone to Gamesa, which recently announced a 231MW deal from CPFL.

In 2012, Brazil's state-owned national development bank (BNDES) delisted Vestas from its Finame financing programme because the manufacturer was failing to meet local content rules. It now meets the regulations.

Vestas has also committed to spending EUR 32 million on its manufacturing footprint there.

The order was first announced in December 2011. Delivery of the turbines was due to begin in 2013 and the projects should have been connected earlier this year.

Vestas Brazil president Ruben Lao said at the Brazil Windpower 2014 conference the group was hoping to achieve 25% of the market by 2017.