Order for 1,500 MW signed by Vestas with possibility for 600 MW more

Vestas has won the largest single order ever in Vestas’ history for delivery of up to 2,100 MW. The order placed by EDP Renováveis (EDPR), the world third largest wind power company, has been awarded to Vestas after a competitive process launched more than one year ago in Chicago, USA.

Today on 26 April, the official signature of the contract between Vestas and EDPR will take place in Lisbon, Portugal. EDPR’s Chairman, Mr Antonio Mexía, and Vestas’ President and CEO, Mr Ditlev Engel, will comment on the significance of this agreement for both companies at a press conference to be held at the Electricity Museum (Museu da Electricidade), Central Tejo, Avenida Brasília, 300 – 598 Lisbon, Portugal at 12.30 p.m. GMT (1.30 p.m. CET).

The order, which is a Master Supply Agreement (MSA) for delivery of up to 2,100 MW, consists of an order for supply, installation and commissioning of wind turbines with a total capacity of 1,500 MW to be delivered to North America, South America and Europe in 2011 and 2012 with the possibility to be extended by an additional 600 MW exercisable in 2010 and 2011. The agreement also includes a two-year service and maintenance agreement extendable to five or ten years, with a subsequent Technical Assistance Agreement for an additional period.

The MSA, one of the largest global wind turbine orders ever announced worldwide, clearly supports Vestas’ Triple15 targets, i.e. achieving EUR 15bn revenues and 15 per cent EBIT margin no later than in 2015. In addition, it sends a positive sign of renewed growth to the entire wind industry.

During a demanding competitive process, Vestas was selected among other major wind turbine manufacturers around the world as the only best-in-class supplier of wind technology for the full tender. The differentiating factor has been the company’s ability to provide the best global value to fit EDPR’s short and medium-term strategic business goals.

Ana Maria Fernandes, CEO of EDPR, states: “Through this agreement, EDPR contracts from Vestas the wind turbine technology that optimises productivity factors and the total cost of ownership, enabling EDPR to have a competitive edge within the wind developing industry.”

“It has been a long and highly competitive process which today materialises in the signing of this agreement, which will further improve EDPR’s positioning in the industry,” Ana Maria Fernandes adds.

Juan Araluce, President of Vestas Mediterranean, says: “We are very pleased to sign this important agreement with EDPR, who is a global key player in the wind energy industry, with whom at the end of 2009, Vestas had installed a total capacity of approximately 2,500 MW worldwide representing around 40 per cent of EDPR’s total global wind capacity.”

He emphasises: “Our continuous focus on top performance and reduction of cost of energy together with our flexibility in deliveries and our worldwide footprint allow us to provide business case certainty and long-term visibility to global customers, such as EDPR, and to our business.”

EDP Renováveis is the renewable energy branch of EDP – Energías de Portugal – one of Europe’s main electricity operators, with a presence in North and South America and Europe. EDP Renováveis is the third largest generator of wind power in the world, with a total installed capacity of 6,227 MW and with 30,310 MW prospected or already in the pipeline.

Vestas is a global company with more than 30 years of expertise and know-how in the field of wind power. With an installed base of more than 40,600 turbines or 38,300 MW around the globe, Vestas is the world’s leading and most committed supplier of wind power solutions.

The webcast of the official signature of the MSA between Vestas and EDPR and the press conference can be followed live on https://www.edprenovaveis.com and www.vestas.com/media. For more background information, video and images please visit www.vestas.com/broadcast.

[mappress]

Source: Vestas , April 26, 2010;