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Siemens Gamesa Wins Major Order for Spanish Wind Farm Cluster

Zamudio, Spain - The RENIXX listed windturbine manufacturer Siemens Gamesa has signed a contract with Spanish renewable power utility Elawan Energy for one of its largest onshore orders in Spain in terms of output.

The order covers the construction of three wind farms. After commissioning, more than 110,000 households can be supplied with the generated electricity. The share price of the German-Spanish wind turbine manufacturer rises significantly.

Siemens Gamesa to use manufacturing capacities and suppliers in the country

Siemens Gamesa has signed a contract to supply the turbines for a 150 megawatt (MW) wind farm complex in the province of Albacete in Castilla-La Manche in central Spain. The customer is Elawan Energy, a Spanish company specialized in the development, financing, construction and operation of its own renewable power plants worldwide. Siemens Gamesa will supply 30 wind turbines (WTGs) of type SG 5.0-145, each with a capacity of 5 MW.

The wind farm complex consists of the three wind farms Fuente Álamo, Frontones and Derramador, each with a capacity of 50 MW, and is scheduled to be commissioned in mid-2022. The contract with Elawan also includes a long-term service agreement for a period of 20 years.

For the production of the turbines and components, Siemens Gamesa is relying in particular on manufacturing capacities in Spain: the 30 nacelles will be assembled at the Siemens Gamesa plant in Ágreda (Soria), the gearboxes will be manufactured at the plants in Asteasu (Guipúzcoa), Lerma (Burgos) and the city of Burgos, and the electrical components at the factories in Reinosa (Cantabria), San Fernando de Henares (Madrid) and Benisanó (Valencia). In addition, Siemens Gamesa's Spanish suppliers will also benefit from the order.

Siemens Gamesa's market share in Spain at over 50 percent

Siemens Gamesa currently has around 15,000 MW (15 GW) installed across Spain. Measured against the total installed wind power capacity, which is 27,500 MW (27.5 GW) according to data from the Spanish Wind Energy Association (AEE), this corresponds to a Siemens Gamesa market share of 53 percent. The current order also strengthens Siemens Gamesa's position in the Castilla-La Mancha region. The wind turbine manufacturer has been present here since 1999 and, excluding the 150 MW project now contracted by Elawan, has so far installed and connected to the grid wind turbines with a capacity of 2,292 MW.

Spain is pursuing comprehensive expansion plans in the field of renewable energies. The government's 2030 target is to achieve 42 percent of final energy use from renewables, up from 20 percent in 2020, with the share of renewables in the electricity mix rising to 74 percent by 2030 and 100 percent by 2050. Measures planned to meet Spain's expansion targets include new renewable energy auctions of 20,000 MW by 2025, half of which will be in wind energy., Siemens Gamesa said.

Share price climbs

Siemens Gamesa's share price gained 4.1 percent in yersterday’s trading to 29.02 euros (March 09, 2021, closing price, Stuttgart Stock Exchange). The share price is thus trading around 27 percent below its annual high of 40 euros on January 08, 2021. Over the year, the share is currently down around 12 percent.

Source: IWR Online, 10 Mar 2021