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

October 16th 2017
Uganda Inaugurates Breakthrough Tororo PV Plant. A Future Model For Africa?

Production has commenced at the Tororo PV power plant; which, with 16 GWh of renewable energy generated annually, will cater for the energy requirements of 35,838 people and help reduce CO2 emissions by 7,200 tons. Overall, $19.6 million was invested to build the 10 MWp plant, with the engagement of several major organisations including KfW and FMO Development Banks, the World Bank and the EU. Attilio Pacifici, EU Ambassador said, “One of the key objectives of this plan is to encourage private sector participation in higher risk investments and we’re happy to demonstrate that Uganda is well positioned to be successful and a good model for replication.”

October 17th 2017
Grids Integration, Energy Networks Boosted By Distributed Generation Growth

Renewable energy has continued to develop at ever increasing rates, with remarkable growth seen since the start of this decade. The pace of the energy transition is driving innovation and growth in related sectors. For energy networks and grids integrating small gas turbines, micro-turbines, fuel cells, biomass, small hydropower, wind and solar energy; distributed generation installation provides significant solutions in the restructured electricity regime. This is particularly so, where there is a larger uncertainty in demand and supply.

October 10th 2017
Enel Starts Construction Of Australia’s Largest Solar PV Project

The Bungala Solar One facility is part of the Bungala Solar PV Project and will have an installed capacity of 137.7 MW out of a total of more than 275 MW for the whole project, that will be able to produce 570 GWh per year. The facility will cover an area of approximately 300 hectares and will consist of about 420,000 polycrystalline PV modules mounted on single-axis tracker structures which will follow the Sun’s path from east to west; increasing the amount of energy produced by the plant, compared to PV modules with fixed structures. The overall Bungala Solar PV project is expected to become fully operational in early 2019.

October 16th 2017
Nordex Adds To Successes In Argentina, Winning 100 MW Pomona Wind Farm Order

The Nordex Group has added a further chapter to its success story in Argentina with an order for 26 N131/3900 turbines for the “Pomona” wind farm. The contract will be executed on a full EPC basis, including civil and electrical engineering, procurement, construction and manufacturing, delivery and installation of the wind turbines. Preparations for construction will be commencing in 2017, after which the wind power systems will be installed at the beginning of 2019. In addition, a ten-year full operation and maintenance contract has also been signed. 


 

   

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