17 August 2017 2017 12:30 PM GMT

Siemens Gamesa Installs Asia’s Tallest Turbines, Whilst Stepping Up Integration

Siemens Gamesa has set a new record in Asia by installing this year the tallest wind turbines on the continent. The turbines are equipped with 153-metre tall towers, and with the 56-metre blades, they reach a total height of 210 metres. The project-owned by Thai engineering company Gunkul and being built by developer PowerChina ZhongNan– has a total capacity of 67.5 MW; i.e. 33 units of the G114-2.0 and G114-2.1 MW models.

Siemens Gamesa has already installed these 33 turbines in the Sarahnlom wind farm in the Nakhon Ratchasima province in central Thailand, while commissioning is scheduled for this year. The company will also be in charge of the plant’s operation and maintenance for the next 10 years. “This milestone showcases the company’s R&D prowess,” said Álvaro Bilbao, CEO of Siemens Gamesa for Asia-Pacific. “We are demonstrating once again our ability to respond to what the market needs and the versatility of our turbines”, he added. In addition to Thailand, Siemens Gamesa’s Asian footprint includes Vietnam, Philippines, Taiwan, South Korea, Japan, Pakistan, Sri Lanka, China, and India, having installed more than 11,000 MW in these markets.

Recently Siemens Gamesa Renewable Energy also released its third-quarter of fiscal year 2017 results (from April to June 2017). During this period, the company has accelerated its integration programme. The announced synergies of €230 million are now the ‘minimum’ and the company expects to realize these synergies in year 3, one year earlier than previously announced. Markus Tacke, CEO of Siemens Gamesa, said: “We are highly satisfied with the progress to date in integrating the two companies. Things are progressing at a rapid rate: our company is ready to compete and lead in a growing and challenging market.”

Regarding the financial performance, in the third quarter of fiscal year 2017, Siemens Gamesa Renewable Energy’s revenues amounted to €2,693 million, down 7% year-on-year, while underlying EBIT came to €211 million (-21%) with the margin at 7.8%. These results were impacted by specific onshore market conditions, including the temporary suspension of the Indian market. Stripping the impact of India, revenues were up 1.6% with a strong 8.6% growth in underlying EBIT margin. In the third quarter, revenue from the sale of wind turbines decreased by 9% to €2,393 million, reflecting lower sales volumes of 1,950 MW (-25%), as a result of temporary market conditions in the onshore business, as well as normal business volatility in the offshore market. In India, the market shut down pending a revamp of the auction system, which is expecting to normalise by the first quarter of the fiscal year 2018.

Overall, the company expects an improvement in the renewable energy sector: demand prospects remain positive, emerging markets continue to play a particularly important role and the renewal of auctions is reactivating mature markets, for example, Southern Europe, and activating new markets such as Argentina and Russia. Excluding China, the global market demand for installations is expected to increase by 8% from 36 GW in 2017 to 45 GW in 2020.

Siemens Gamesa continues to lead the offshore segment having installed 10 GW, nearly 70% of the global offshore fleet, and anticipates strong growth of more than 24% annually in offshore installations until 2020. The medium term prospects remain positive with an agreement reached this quarter with Dong for the construction of the Borssele 1 and 2 wind farms, involving 94 turbines (756 MW) to be commissioned by the end of 2020.

The operations and maintenance (O&M) service revenue expanded by 8% to €300 million with an underlying margin of 16.7%. The fleet under maintenance continued to grow, reaching 54 GW worldwide (+13%). In this specific market context, Siemens Gamesa obtained €135 million of underlying net profit between April and June, equivalent to €0.2 per share. Underlying EBIT declined 21% to €211 million while the underlying EBIT margin was constant at 7.8%. These figures were also impacted by the disruption in business activity in India which is expected to normalise by the first quarter of the fiscal year 2018. The company continues to strengthen its balance sheet and ended the quarter with a net cash position of €236 million.

Presently. a major focus for the company is the integration of the two entities of Siemens and Gamesa. The integration process has the focus of realising the company’s substantial potential, thanks to its bigger scale and global reach: a presence in more than 90 countries, an installed base of 75 gigawatts, and a strong order book of €21 billion. Markus Tacke, CEO of Siemens Gamesa, stressed that the company boasts “a very strong global presence, underpinned by solid relationships with customers around the world, a global supply chain, and a broad manufacturing footprint. We have some of the most reliable and efficient products in the industry”.

Image: Courtesy of Siemens Gamesa Renewable Energy

September 17th 2018
MHI Vestas Signs Firm Order for Largest MW Project in Company History

MHI Vestas Offshore Wind will supply 90 of its flagship V164-9.5 MW turbines for the 860 MW Triton Knoll Offshore Wind Farm project; its largest MW project to date. MHI Vestas celebrated the financial close of the deal with innogy, at the site, confirming the project as the largest (MW) in the history of the turbine company. Affirming its strengthening position in the UK offshore wind market, the Danish-Japanese joint venture will supply 90 of the world’s most powerful commercially available turbine, the V164-9.5 MW, and has agreed on a comprehensive 5-year O&M agreement.

September 16th 2018
Ingeteam Develops New Optimal Offshore Power Conversion Architecture

Ingeteam, an independent global supplier of electrical conversion and turbine control equipment, has announced that a recent in-house R&D study allowed them to work out the optimal electrical power conversion designs for offshore wind turbines up to 15 MW. The research, taking into account the complex set of parameters at play in LCoE, enabled it to develop a Medium Voltage Power Converter reaching up to the 15 MW power range. Ingeteam claims that its new design is the ideal solution for scaling up offshore turbine platforms and will present its converter and the associated research at the Global Wind Summit in Hamburg next month.

September 10th 2018
Ørsted Announces Plans For Offshore Wind Farm To Power 1 Million UK Homes

Ørsted, the largest energy company in Denmark has recently unveiled its plans for a sustainable energy solution to power more than 1 million homes in the UK when completed. The company is one of many leading organisations speaking and presenting at the 17th annual Benelux Infrastructure Forum on 21–22 November in Amsterdam. This year’s 2-day conference is the biggest yet, hosting an international gathering of industry leaders from law firms, banks, investment asset and fund managers, energy companies, insurance companies, European Commission, and engineering consultancies.

August 25th 2018
Electrification The Key To Decarbonising Europe’s Economy

Electrification is the key to decarbonising Europe’s economy, according to WindEurope CEO Giles Dickson. He said: “according to the IEA, wind will be the #1 source of electricity soon after 2030, providing more than 30% of Europe’s electricity, but electricity is only 22% of the final energy needed by Europe’s economy. Political momentum is starting to grow for an EU target of net-zero emissions in 2050. To do this we’ll need to electrify heating and transport, where the share of renewables is just 18% and 6% respectively; that has to be the #1 priority”.

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