Iberdrola Orders $993 Million of Siemens Turbines for Wind Farm

Iberdrola Renovables SA, the world’s biggest operator of land-based wind parks, agreed to buy 700 million euros ($993 million) of turbines from Siemens AG for its first offshore project.

Iberdrola Renovables’ ScottishPower unit is building the 389-megawatt West of Duddon Sands wind farm in the Irish Sea with Danish utility Dong Energy A/S. It will cost 1.6 billion pounds ($2.56 billion) and will generate enough power for 300,000 homes when it goes into operation in 2014, Iberdrola Renovables said today in a statement.

Britain has more turbines installed at sea than any other country and this project will help it reach its goal of having 13 gigawatts in operation by 2020, to meet European Union renewable energy targets.

Siemens will design, transport and install 108 turbines, each with capacity of 3.6 megawatts. The turbines will use gears, Alfons Benzinger, a spokesman for Munich-based Siemens, said today by phone, though the company also has a model that doesn’t contain gears.

Dong and Bilbao-based Iberdrola Renovables said they will fund the wind farm equally and expect to award additional contracts this year. The project, 14 kilometers (8.7 miles) off the coast of Barrow-in-Furness in northern England, also includes an offshore transmission line that will be sold to an operator once it goes into operation.

The companies have commissioned two installation vessels, according to the statement. Under a separate contract, Siemens will provide maintenance for the turbines for five years. Delivery is expected in mid-2013.

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