Five of the biggest wind-turbine
makers have been shut out of Brazil’s $3.5 billion market by the
national development bank BNDES after failing to meet local-
content requirements.
Vestas Wind Systems A/S (VWS), Suzlon Energy Ltd. (SUEL), Siemens AG (SIE),
Acciona SA (ANA) and Fuhrlaender AG aren’t getting at least 40 percent
of their parts from local suppliers and are no longer eligible
for BNDES financing, the country’s only source of loans for
turbines, said Elbia Melo, executive president of the wind-
industry trade group, Associacao Brasileira de Energia Eolica. Developers can’t tap BNDES loans for 2,000 megawatts of turbines they agreed to buy from the suppliers, and will either suspend construction on some projects or switch vendors, Melo said. The world’s top turbine makers are setting up Brazilian plants to meet surging demand and haven’t established the domestic supply chain they pledged to create, according to government officials.
“BNDES and the turbine makers agreed on a timeline to develop factories and turbine makers didn’t keep to it,” Henrique Tinoco, a director at state development agency Superintendencia do Desenvolvimento do Nordeste, said in a telephone interview. “This is a public bank with limited resources. Of course it’s going to prioritize the acquisition of capital goods produced nationally.”
Wind-turbine installations in Brazil may almost triple to 1,695 megawatts this year from 2011, making it the fifth-largest market, according to Bloomberg New Energy Finance, and the country is promoting policies to ensure the boom benefits other parts of its economy.
Vestas, based in Aarhus, Denmark, dropped 57 percent this year through yesterday. Pune, India, based Suzlon increased less than one percent over the same period compared with the Bloomberg Wind Energy Index (BWIND) of 64 companies that’s lost 13 percent.