Bloomberg News

Vestas Competes With Enercon, Nordex for Turkey Wind-Power Sales

June 07, 2011

June 7 (Bloomberg) -- Vestas Wind Systems A/S, the world’s largest wind-turbine maker, will compete with Enercon GmbH and Nordex SE for market share in Turkey as the government awards more wind-power licenses, said Mehmet Ali Neyzi of Vestas.

“Vestas is the biggest wind turbine supplier in Turkey with about 30 percent market share,” Neyzi, managing director in charge of Turkey and the Middle East for the Randers, Denmark-based company, said in an interview. “Now that the government has paved the way for new licenses after a suspension period, competition has started to increase and we want to keep our market share, though some minor fall is possible.”

A new law guarantees the government will purchase wind and hydro power for 7.3 U.S. cents per kilowatt hour, and there are additional incentives planned for using locally made equipment, potentially adding 0.4 cents to 2.4 cents to the guaranteed price for five years. This is attracting investment after three years of lull, Neyzi said. Purchase prices for wind power in Europe are about 9 euro cents (13.15 U.S. cents), he said.

Turkey, which has 50,475 megawatts of total power capacity including 1,406 megawatts from wind, received wind-power license applications for about 80,000 megawatts in 2007. State power transmission utility Teias started auctions in February to award licenses for 8,000 megawatts of wind power and has awarded licenses for about half that total, according to the Teias website. The government aims for 20,000 megawatts of wind power by 2020, about one-quarter of total capacity.

Increasing Demand

Vestas also competes with General Electric Co. and Siemens AG to supply wind power equipment in Turkey, Neyzi said. Enercon and Nordex are its biggest rivals in the sector, he said.

Turkey wants to increase hydroelectric, wind and solar power to cut dependence on gas from Iran and Russia and meet increasing power demand that Neyzi estimates is growing 6 percent to 8 percent annually.

“We urgently need the secondary legislation to be passed” to provide the additional incentives for using locally produced wind-power equipment, Neyzi said.

“Wind equipment prices fell about 20 percent from 2008 and this will help the government to reach its wind-power capacity target,” Neyzi said. Vestas is delivering orders within six to eight months, compared with about two years before the financial crisis hit global demand in 2008, he said.

Production in Turkey

Vestas, which has manufacturing plants in Spain, Italy, Germany and Denmark, is studying options to build blades and nacelle casings in Turkey, Neyzi said. “Turkey can be a good manufacturing location with its logistics advantages and quality workforce,” he said.

If Vestas builds its own blades in Turkey, it will do so through its wholly owned local unit, Neyzi said. Vestas has a Turkish subcontractor in western Bursa province that builds turbine towers, he said.

GE, which aims to expand its Turkish energy business, may revive a plan developed before the 2008 credit crisis to build wind turbines in Turkey, Mete Maltepe, head of GE’s local energy units said in an interview Nov. 10.

Vestas is working with Aksa Akrilik Kimya Sanayii AS, a Turkish maker of acrylic and carbon fibers, to procure carbon fibers for its wind turbine blades, Neyzi said.

--Editors: Robert Valpuesta, James Callan.

To contact the reporter on this story: Ercan Ersoy in Istanbul at

To contact the editor responsible for this story: Benedikt Kammel at

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