First evidence of Goldwind-EDPR link in Morocco wind bid

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First evidence of Goldwind-EDPR link in Morocco wind bid China Three Gorges owns a 27% stake in GoldwindPhotograph: AP/PA

First evidence of Goldwind-EDPR link in Morocco wind bid

Portuguese renewables giant EDPR has teamed up with Chinese turbine manufacturer Goldwind to bid in the ongoing Moroccan wind power tender.

Early this year Morocco invited companies to bid for five wind farms totalling 850MW of capacity, and EDPR and Goldwind have linked to put themselves in contention.

This is the first major collaboration between EDPR and Goldwind, following months of speculation in the wake of the purchase of a 21% stake in parent group EDP by China Three Gorges (CTG), which itself owns a 27% share of Goldwind.

“We have a very competitive proposal in terms of pricing and in terms of the concept, which will be attractive to Morocco’s government as it will allow the country to have factories there,” says EDPR chief executive Joao Manso Neto.

However, he cautions: “It’s an international tender and we will have to wait for the list to see if we are among those who have pre-qualified.”

Previously, EDPR officials had said that they would not be rushed into buying Chinese turbines – and that there was nothing in the CTG deal that obliges them to do so.

However, officials have also indicated that the CTG partnership would allow them to “broaden” relationships with Chinese wind turbine manufacturers, while Manso Neto said that the Morocco proposal is “related” to the deepening relationship with CTG.

As part of the deal, CTG is set to invest €2bn ($2.4bn) in EDPR’s wind assets, with the first €1bn to be agreed by the end of this year, and the second half to be lined up by May 2013. This will give CTG stakes in around 900MW of operational and 600MW of ready-to-build projects between 2012-2015.

EDPR officials also say that they are considering holding another major wind turbine supply tender to cover the years 2013/14.

“The Vestas contract takes us through 2013 but doesn’t fulfill our entire needs, so we are looking at 2013/14 and at how we should approach the market,” says investor relations head Rui Antunes. However, he adds: “We are not in a hurry at this point.”

In April 2010, EDPR and Vestas signed a framework supply deal for 2011/12 – the largest in the Danish company’s history. The two companies signed a 1.9GW, seven-year service agreement in January.

First-half profits boost as power outupt rises

EDPR boosted its net profit by 10% to €100m on the back of a 13% increase in electricity production in the first six months of the year.

The growth, measured against the same period in 2011, was led by strong output from EDPR’s European assets.

The Portuguese company converted the 9.9TWh of power it produced into €602m of electricity sales – a 24% increase.

The company noted “robust” wind resources in Spain during the period, supported by a strong performance in Central and Eastern Europe.

By the end of June, EDPR had a global onshore wind portfolio of 7.5GW, including its interest in the Eolicas de Portugal consortium. It operates 3.66GW in Europe and 3.42GW the US.

EDPR has installed 339MW of new capacity over the last 12 months and expects to add 500MW in 2012 as a whole.

Ben Backwell, London

Published: Wednesday, July 25 2012

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