Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

EDF to Buy Up to 2,000 Megawatts of Vestas Wind Turbines

June 30 (Bloomberg) -- EDF Energies Nouvelles SA, a French renewable energy developer, is seeking to lower its costs by agreeing to use turbines from Vestas Wind Systems A/S for at least half of its land-based wind farms in Europe and 30 percent of its projects in the U.S.

EDF may buy as much as 2,000 megawatts of turbines under the agreement that covers deliveries made from 2012 through 2014, Randers, Denmark-based Vestas said today in a statement. Prices weren’t disclosed.

That includes 100 megawatts for projects in Europe that EDF agreed in November to purchase, and a commitment today to purchase another 80 megawatts. Vestas shipped almost 4,100 megawatts of turbines last year, according to its 2010 annual report.

The deal gives EDF long-term visibility into its costs at a time when wind projects are accelerating and developers are looking for ways to make their projects more competitive with traditional energy sources.

“EDF Energy Nouvelles is locking in long-term pricing and probably getting some pretty good terms on the deal,” Amy Grace, a New York-based analyst at Bloomberg New Energy Finance, said in an interview today. The contract gives EDF “the leverage of a large order using a multiyear framework agreement.”

U.S. wind power installations are expected to increase to 7.5 gigawatts this year from 5 gigawatts in 2010. There were 10 gigawatts installed in 2009.

The agreement is “a major and crucial deal that will enable us to provide competitive renewable energy solutions,” EDF Energies Nouvelles Chief Executive Officer David Corchia said in the statement.

EDF Energies Nouvelles is half-owned by Paris-based utility EDF SA. The company develops renewable energy projects in the U.S. through its San Diego-based EnXco unit.

To contact the reporter on this story: Ehren Goossens in New York at egoossens1@bloomberg.net.

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.