Siemens to Supply Offshore Wind Turbines to Dong’s German Sites

Siemens AG agreed to supply 924 megawatts of wind turbines to Dong Energy A/S projects off Germany, signaling that obstacles to the industry’s expansion are easing.

The agreement provides for the supply and servicing of 154 6-megawatt turbines at Dong’s Gode Wind projects, it said today in an e-mailed statement, without disclosing terms. The order will become unconditional once the Fredericia, Denmark-based utility commits investment to proceed.

The accord may ease concern that Germany can’t meet wind-output targets. Its offshore wind ambitions, at the heart of a state program to triple the share of renewables in the power mix by 2050, have faltered as debt-strapped utilities postpone investments, grid connections stall and construction costs soar.

“With these agreements we are stepping up our commitment to the German offshore wind market,” Samuel Leupold, executive vice president of Dong’s wind-power unit, said in the statement. The company plans to install 6,500 megawatts of offshore wind by 2020 compared with 1,700 megawatts now.

Dong bought the three North Sea-based Gode Wind parks from German developer PNE Wind AG last year, and may install turbines from 2015. The Danish company will also use Siemens’ 6-megawatt machine at its Westermost Rough wind farm off northern England.

Germany is targeting 10,000 megawatts of offshore wind capacity by 2020, two years before its last nuclear plants shut down. The government sees offshore wind at 25,000 megawatts by 2030 -- up from about 280 megawatts now -- as it implements a 550 billion-euro ($722 billion) plan to replace reactors.

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