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Siemens Awarded Contract to Supply 500 Wind Turbines in the Largest Wind Power Deals

Siemens Energy and E.ON today signed one of the largest wind power deals ever. The two major German companies agreed that Siemens will supply 500 wind turbines with a total capacity of 1,150 megawatts (MW) to E.ON for new projects in the United States and in Europe.

The wind turbines will be delivered and installed in 2010 and 2011. This major contract marks a new era of collaboration between E.ON and Siemens in the renewable energy business. Both companies have agreed to work closely together to drive the performance of reliable and environmentally friendly wind power projects around the globe. Both parties believe that collaborative partnerships will form the basis for the future development of the renewables industry.
“This agreement with E.ON is the largest single wind power deal Siemens has ever signed in its history”, said René Umlauft, CEO of the Renewable Energy Division within the Siemens Energy Sector. “The new partnership between E.ON and Siemens is not only to the great benefit of the two companies. The cooperation also marks an important step in the remarkable evolution of wind power as a mainstream energy source.”

“This agreement represents a major milestone in the supply chain strategy for E.ON’s Renewables Business”, said Dr Frank Mastiaux, CEO of E.ON Climate & Renewables. “We are delighted that Siemens shares our vision and agrees to work together to deliver benefits to both parties. This makes a significant step in the industry`s journey from boutique to industrialization.”

The reservation agreement between Siemens and E.ON covers the delivery of 500 wind turbines with a capacity of 2.3 MW each. The machines will feature various combinations of tower heights and rotor diameters. 600 MW of wind power capacity are reserved for U.S. projects, 550 MW will be installed in wind farms across Europe. E.ON will place individual orders with Siemens for each project on the terms agreed in the framework agreement.

The nature of the unique to industry collaboration approach provides for the parties to work together to improve turbine efficiency and reduce maintenance costs through a well-defined programme of work and mutually agreed performance measures as part of the agreement.

Posted September 9th, 2008

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