GE (NYSE:GE) to Sell Brazil $1 Billion Turbines a Year
Wind Capacity to Rise 11-fold
General Electric’s (NYSE: GE) renewable energy unit expects to see yearly turbine sales of around $1 billion in Brazil over the next ten years.
The company projected that 1.5 to 3 GW of wind turbines will be installed in Brazil annually, and GE expects to be one of “three or four players” supplying these units.
GE also revealed a deal yesterday in which it will be providing Brazil's Renova Energia SA with 386 MW of turbines. The deal is worth $394 million and will provide enough power for a city of a million people.
Bloomberg quotes Vic Abate, head of GE’s renewables unit:
“Two years ago, we were zero and now it’s over a billion dollars a year,” Abate said. Brazil is “a sustainable market.”
It’s well known that Brazil has become a hotspot for wind development; it is now the world’s fastest-growing wind market. Contrast that to the U.S., where the expiration of a vital production tax credit for wind has meant a severe slowdown in the domestic wind industry.
Demand in 2013 is expected to slow down even more if Congress does not renew the credit, which expires at the end of the year.
Meanwhile, Brazilian wind capacity is set to hit 15.6 GW by 2021, eleven times its current capacity. Chinese turbine manufacturers are also trying to cash in on the boom.
GE was up 1.10 percent on Wednesday afternoon to $21.09.