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Sinovel to supply 23 turbines for Brazilian wind power project

Sinovel Wind Group (601558.SH), the world’s second-largest wind-turbine manufacturer, will supply Desenvix with 23 turbines for a 34.5 megawatt wind farm in Brazil’s northeastern state of Sergipe, Bloomberg reported. It is the first South American purchase of Chinese turbines, which cost 14% less than the global average price per megawatt. Brazilian projects totaling 1.9 gigawatts signed power-supply contracts in August, but half had not yet announced a turbine supplier. “Some developers may be forced to buy Chinese technology to reduce costs,” said Eduardo Tabbush, an analyst at Bloomberg New Energy. Relatively high labor costs in Brazil may hurt competitiveness vis-a-vis China, he added. The turbines will be delivered to Desenvix by December, and should be operational by July. Sinovel also announced plans to build a factory in Brazil.

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