Wind energy Gamesa signs MoUs for 900 MW of wind power capacity in China

Gamesa, a global leader in wind turbines and a benchmark in wind farm development, has achieved a major qualitative leap in its trade relations with China.

Memoranda of Understanding (MoU) with Longyuan, China Resources Power and Datang may culminate in contracts to supply 900 MW of wind turbines capacity. “Go Global” international strategic cooperation agreement will see Gamesa and Longyuan jointly develop wind farms internationally. Gamesa and Longyuan sign additional agreement to jointly develop 200 MW of wind farms in China by 2015.

Gamesa, a global leader in wind turbines and a benchmark in wind farm development, has achieved a major qualitative leap in its trade relations with China, after power company Longyuan -- the world´s No. 3 wind farm developer -- chose Gamesa as its partner to jointly develop wind projects in international markets outside of China. The agreement - the first to be signed by Chinese and Spanish companies in the wind energy industry - calls for the partners to research suitable sites for the joint development of wind farms in international markets, primarily the United States and European and Latin American countries.

Gamesa and Longyuan will research wind projects, both those Gamesa has already identified and included in its wind farm project portfolio, and new ventures in strategic countries. Gamesa currently has a wind farm portfolio totalling more than 22,600 MW at varying stages of development in Europe, the Americas and Asia.

"This agreement marks a before and after in our relationship with Longyuan and it represents a qualitative leap in our presence in the wind market, as we become partners in the international expansion of one of the world's top wind farm developers" said Gamesa Chairman and CEO Jorge Calvet. "Gamesa has carved out a market position as a leader in technology, and we will now offer our know-how for finding potential wind farm sites and for project management of joint ventures in the world's most promising wind markets," said Calvet.

According to Mr. Xie, President of China Longyuan Electric Power Group, "In Gamesa we have found the ideal partner for our growth strategy, thanks to its comprehensive understanding of the business as a technology company and wind farm developer and its experience in the development of wind farms in the world's largest markets".

The venture includes other agreements signed today for technical skills and training, which will position Gamesa as a technology leader in one of the world's fastest-growing wind markets.

MoUs for 900 MW and 200 MW of new joint wind energy developments

Coinciding with the Spanish Prime Minister's visit to China, Gamesa has reached three Memoranda of Understanding (MoU) with power companies Longyuan, China Resources Power (CRP) and Datang, which may culminate in firm contracts in coming months, to supply turbine capacity of 900 MW.

Additionally, Gamesa has agreed to jointly develop wind farms (200 MW) with Longyuan by 2015.

In the event that these agreements are finalised, Gamesa would begin a business relationship with a new power company, China Resources Power (CRP), while building on its existing relationships with Longyuan and Datang.

Gamesa has already delivered turbines (more than 1,200 MW of installed capacity) to Longyuan and the companies have jointly developed wind farms with combined capacity of 200 MW.

With Datang, Gamesa is currently developing wind farms with capacity of 289 MW in the province of Liaoning, and in 2010 sold this client a total of 50 MW of its G8X-2.0 MW turbines.

3,000 wind turbines installed in China, and a joint development pipeline of 2,900 MW

Gamesa in China operates as a turbine manufacturer and wind farm developer, a competitive advantage it strengthens through joint ventures with the country's major power companies (at a global and provincial level), thanks to its comprehensive knowledge of the wind energy industry.

Gamesa has installed approximately 3,000 turbines at more than 60 sites across China since 2000. The company currently has four manufacturing plants in Tianjin province, and is building another two factories in Jilin and Inner Mongolia. Gamesa employs 1,200 people in China.

As a wind farm developer, and including the agreement reached today, the company's joint project portfolio in China now totals 2,900 MW. China in 2010 accounted for 28% of the company's total sales, vs. 15% in 2009.