Vestas set for 1GW Russia deal

RUSSIA: Vestas has been named the chosen supplier for the 1GW capacity won by developer Fortum in the recent Russian tender.

Vestas could be set to supply up to 1GW of Russian wind projects
Vestas could be set to supply up to 1GW of Russian wind projects

The Danish manufacturer said as a result of the agreement, it was planning to set up a manufacturing site in the country to comply with Russia's strick local content laws.

Finnish company Fortum's joint venture with local energy group Rusnano was the biggest winners in the auction, securing contracts for 1GW of wind power.

The Fortum-Rusnano JV will deliver 26 projects between 2018 and 2022, securing  €115-€135/MWh in capacity payments.

Vestas said it would disclose further agreements when they are made.


The Vestas announcement comes after rival Siemens Gamesa Renewable Energy (SGRE) was reported to supply equipment for Enel's wind power plants in Russia.

Carlo Palasciano Villamagna, general director of Enel Russia, said the Spain-headquartered manufacturer would supply the projects during the annual general meeting of the company's shareholders.

The agreement was achieved as a result of long talks between the sides, while the details are currently undisclosed.

Enel Russia won the rights to build two wind power plants in Russia with the total capacity 291MW as part of a tender.

Total investment in the projects is estimated at €405 million.


Meanwhile, Dutch firm Lagerwey signed a licensing agreement with the tender's other winner, Rosatom-subsidiary Otek.

Lagerwey will help set up manufacturing facilities and train Otek employees in producing its turbines for the Russian and neighbouring markets, the Dutch turbine maker said.

It will also aid the creation of a local supply chain.

Otek owns developer VetroSGC, which was awarded 360MW of capacity in the Russian tender earlier in June.

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