Vestas regains BNDES accreditation

BRAZIL: Vestas can now access financing in Brazil after meeting local content laws set by the Brazilian development bank BNDES.

Manufacturing of Vestas' V110-2MW turbines meets BNDES financing rules

Vestas now complies with the Finame II code, which requires 70% local content sourcing for hub, nacelle, tower and blade manufacturing — up from 60%. 

The Finame finance programme provides soft loans and tax breaks. In 2013, turbine manufacturers Alstom, Impsa, WEG, GE, Wobben, Acciona and Gamesa qualified just after the new rules were set.

Vestas did not and so was delisted — as were other turbine majors in Brazil, including Siemens and Suzlon.

According to Vestas, some components for its V110-2MW turbines will be manufactured by a number of local suppliers, while the hubs and nacelles will be manufactured at a plant in Fortaleza, north-east Brazil.

"Our V110-2.0 MW platform turbines are very well-suited for Brazilian wind conditions, and the Finame II accreditation will allow Vestas' customers to leverage BNDES' attractive financing", said president of Vestas Mediterranean, Marco Graziano.

In June 2014, Vestas said it would invest €32 million in meeting the requirements, following an agreement with BNDES.

The access to BNDES' Finame financing is considered essential for turbine manufacturers to offer equipment at competitive prices.

In October 2014, Vestas was forced to cancel a 254MW order from CPFL Renovaveis in part because BNDES financing could not be accessed.