Repower receives €2bn order for wind turbines

By Chris Bryant in Berlin
Published: February 18 2009 14:23

Repower Systems, the German engineering company, on Tuesday received the largest ever order for offshore wind turbines from RWE, Germany’s second biggest utility, in a deal worth a potential €2bn.
RWE Innogy, the utility’s renewable arm, is set to purchase 250 turbine units, each with a rotor diameter of 126 meters, from the Hamburg-based company, according to a framework agreement.

Most of the turbines will be used to construct a 1,000MW windfarm some 40km off the North Sea island of Juist, which will generate enough power to supply around 780,000 homes. The first units are due for delivery in 2011.
The deal marks a significant boost for the offshore wind industry, which has been rocked by turmoil in global credit markets that has put the financing of some projects in doubt.
Offshore wind farms are riskier and more expensive than the onshore equivalent and their cost-effectiveness in relation to other forms of energy has been further undermined by a slump in the price of crude oil.
Per Hornung Pedersen, chief executive of Repower, said the contract was a “positive signal for the entire wind industry” given the current economic situation.
Repower last week affirmed its sales forecast for the full year but warned that the unstable global economy could lead customers to try to delay some projects. Sales in the first nine months of its fiscal year increased by 46 per cent to €850.5m.
The company is majority-owned by Suzlon Energy, an Indian wind power company, which acquired some of its stake from Areva, the French nuclear power company, and Martifer, the Portuguese group.
Suzlon is due to increase its stake to almost 91 per cent by May through the acquisition of additional shares from Martifer.
Copyright The Financial Times Limited 2009