Vestas Expands Into Russia In New Agreements With Fortum Energy

Vestas Wind Systems A/S announced on Wednesday that it had entered into a binding framework agreement with OOO Fortum Energy on the back of Russia’s first wind energy auction held earlier this year.

Concluded in June, Russia’s first renewable energy auction — which was open to solar, wind, and hydropower projects — awarded a total of 2.2 GW (gigawatts) worth of renewable energy projects, including 520 MW (megawatts) worth of solar PV and 1.65 GW worth of wind energy.

Following in the wake of the announcement, OOO Fortum Energy’s (Fortum Energy) Fortum-RUSNANO wind investment fund announced it had been awarded 1,000 MW worth of wind capacity in the auction for projects to be commissioned between 2018 and 2022 at a price of approximately €115-135 per MWh. Fortum-RUSNANO quickly announced that Vestas would act as its wind turbine supplier in Russia.

Fortum-RUSNANO also announced late last month that it had begun construction of its first 50 MW wind project, the first awarded to the investment fund as part of Russia’s renewable energy auction, which is expected to be completed and operational during the first half of 2019.

Announced on Wednesday, Vestas Wind Systems confirmed that it had entered into a binding framework agreement to supply the first order of wind turbines for the 50 MW project. Vestas will supply 14 of its V126-3.6 MW wind turbines to an undisclosed location.

“As the global leader in wind energy, it is an expression of our commitment to Russia that Vestas, together with Fortum Energy, takes a strong role in helping the world’s fourth largest electricity market towards a more sustainable energy mix,” said Nils de Baar, President of Vestas Central Europe. “Vestas will deliver its most advanced technology through our 4 MW platform as well as market-leading cost of energy and local manufacturing and supply-chain expertise that will provide affordable, sustainable energy and create long-term jobs across different Russian regions.”

The aim for both Vestas and Fortum Energy is to “lead the expansion of wind energy in Russia” while working with local partners to establish a strong local manufacturing chain of supply. Vestas will therefore set up a blade factory in the region of Ulyanovsk, as well as a nacelles assembly plant in Nizhny Novgorod region, and a towers factory in the Rostov region.