Vestas' Year-End Deals Include Wind Projects in U.S., Brazil, Ireland

Major wind turbine manufacturer Vestas has announced several deals as the company ends 2022, including what the Danish company calls the largest wind project in Latin America, along with a U.S. onshore wind repowering project.

The announcements come as the wind power industry continues to be challenged by several factors, including equipment supply chain problems along with permitting issues. Vestas CEO Henrik Andersen, during a November meeting with investors to discuss the company’s third-quarter results, said he was cutting the group’s financial forecast for 2022.

The past week’s announcements bring Vestas’ announced order total for 4Q2022 to 2.63 GW, compared to 2.86 GW of orders in the last three months of 2021. The company has booked orders for 9.62 GW of capacity so far this year, compared to 13.9 GW a year ago.

Repowering Project Set

Vestas on Dec. 28 said the order for a 73-MW repowering at an undisclosed U.S. facility is for 33 of the company’s V110-2.0 MW wind turbines, operating in 2.2-MW mode, to replace the site’s current technology. The announcement comes one day after Vestas on Dec. 27 said it had secured an order for 64 of the company’s V150-4.5-MW wind turbines for the 288-MW Serra de Assuruá wind farm, located in the municipality of Gentio do Ouro in the state of Bahia, Brazil.

Vestas also on Tuesday said it received a 93-MW order from SR Energy AB to power the Älgkullen wind project in Sweden. The order includes a total of 15 V162-6.2 MW wind turbines.

The company on Dec. 21 announced it had received a 126-MW order for the Bord na Móna Derrinlough Wind Farm Project in Ireland, considered the largest onshore wind installation in that country. The order includes a total of 21 V150-6.0 MW EnVentus wind turbines that will be installed at the site in County Offaly, located in the Irish midlands.

John Reilly, Bord na Móna’s head of renewable energy, said, “Bord na Móna is committed to green energy for the people of Ireland which is evident by the investment of over €150m [$159 million] by the company in the development of this project.”

UK Installation

Vestas also on Dec. 21 said it received a 108-MW order from Infinergy UK to power the Limekiln wind farm project in the UK. The order includes supply, installation, and commissioning of 24 V136-4.5 MW turbines, along with a 20-year service agreement.

Vestas on Wednesday said the U.S. repowering project also includes a service agreement. Turbine delivery will begin in the third quarter of 2023, with commissioning scheduled by the end of 2023.

The project in Brazil, in a partnership with Engie Brasil Energia SA, includes a 25-year service agreement. The companies on Tuesday said the installation is designed to eventually have more than 800 MW of wind energy capacity; a contract for 540 MW of capacity was signed in September of this year. A gradual startup of the project is expected in the second half of 2024.

“It is a pleasure to work in partnership with ENGIE Brasil Energia and reinforce the joint commitment to facilitate and accelerate the energy transition in Brazil,” said Eduardo Ricotta, president of Vestas Latin America. “At Vestas we will continue working to contribute to the development of the Brazilian energy matrix based on wind energy and closely with our partners to continue developing large-scale projects such as the Serra de Assuruá.”

Brazilian Bookings

Vestas has booked orders of more than 8 GW for its V150 turbine in Brazil since 2018. The Serra de Assuruá project will have 846 MW of total nominal capacity when completed, making it the region’s largest when it enters service.

The Derrinlough wind project in Ireland is expected to see its first equipment delivery and installation in early 2024. Ireland is ramping up its installation of wind and solar power as it seeks to hit a target of 80% of its electricity from renewable resources by 2030. The country has a goal of installing at least 7 GW of offshore wind capacity by 2030.

The turbine order for the Älgkullen project in Sweden includes supply, installation, and commissioning of the turbines, as well as a 35-year service agreement. Turbine delivery is scheduled for 2Q2024, with commissioning scheduled by year-end 2024. The project is located in the Smedjebackens municipality.

“We are proud to yet again be trusted to deliver turbines to SR Energy AB, with whom we share a long partnership. The long-term service agreement also reflects both parties’ long-term commitment with each other,” said Juan Furones, Vestas’ vice president of sales for Northern and Central Europe. “This order also underlines the versatility and strong performance of the EnVentus platform technology, Vestas’ next generation in the evolution of wind turbines, and demonstrates its applicability to the Swedish market.”

“We are very much looking forward to start the construction of windfarm Älgkullen. With its 93 MW it will be a much-needed contribution of renewable energy in southern Sweden. The partnership with Vestas guarantees high ambitions regarding the long-term efficiency of the project,” said Peter Zachrisson, CEO of SR Energy AB.

The Limekiln project in the UK is located about 13 miles west of Thurso in the Scottish Highlands. Delivery and installation of the wind turbines is expected in 2Q2024, with commissioning in the second half of that year.

“Vestas are proud to work with Infinergy for the first time in the UK, and we are excited to yet-again supply the V136-4.5 MW for the UK market,” said Furones. “We are pleased to contribute to the UK’s net-zero ambitions through our industry-leading wind energy solutions and strong partnership with our customers.”

Darrell Proctor is a senior associate editor for POWER (@POWERmagazine).

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