Page 13 - AsiaElec Week 05

AsiaElec
NEWS IN BRIEF
AsiaElec
service revenue, which is expected to grow by 7%.
Vestas expects to achieve an EBIT margin before special items of 7-%9, with a service EBIT margin of 25%.
Total investments are expected to amount to EUR700m in 2020.
e Board of Directors proposed a dividend of DKK7.93 per share, compared to DKK7.44 last year, and equivalent to 30%% of the net pro t for the year.
“Wind energy manifested its position
as a leading global energy source in 2019, driving Vestas’ order intake to a record 17.9 GW, 20% growth in revenue and expected high activity levels in the coming years. In an extraordinarily busy year, Vestas extended
its industry leadership, met its guidance on
all parameters and scaled the company to deliver on our highest-ever order backlog of EUR34bn. Once again, our Service business delivered year-on-year growth and improved pro tability, underlining its strategic importance in a tough market. In 2019, the industry thus faced challenges from trade wars and tari s, causing execution costs
to increase, which we expect to continue
in an even busier 2020. Together with our customers and partners, everyone at Vestas worked vigorously to create the momentum to nish 2019 strongly, and we must continue this momentum to achieve our goals for 2020. As we continue to lead the transition towards a world powered by sustainable energy, we remain focused on executing our strategy
and pushing the industry to higher levels on technology, pro tability and sustainability,” says Henrik Andersen, Group President & CEO.
VESTAS
Siemens buys out
Iberdrola’s stake in
Siemens Gamesa
Siemens is to buy Iberdrola’s 8.1% in Siemens Gamesa Renewable Energy (SGRE) for EUR20 per share.
e Siemens board has approved the deal, with the EUR1.1bn price corresponding to
a 32% premium on top of the average share price for the last 30 trading days.
Siemens will contribute all its shares in SGRE to the new Siemens Energy company. is move will create a pure-play energy company with a unique value proposition in the area of conventional and renewable energies.
Siemens Energy, which will then hold about 67% of the voting rights at SGRE, will have a two-thirds majority at the company’s
annual general meeting. No mandatory takeover o er to SGRE’s external shareholders is planned.
Iberdrola, Siemens and SGRE have also signed a co-operation agreement that covers certain projects for wind power generation and for improving the distribution grid.
For these projects, Iberdrola, as a customer of SGRE and Siemens, will grant these companies exclusive negotiation rights for a limited period of time.
Furthermore, Siemens expects that additional annual savings of up to EUR100mn can be realised by unwinding the shareholder agreement and through intensi ed cooperation between Siemens and SGRE, resulting in a net present value of about EUR900mn.
“Siemens and Iberdrola had taken the
rst step to a necessary consolidation in the sector. We have created a leading and robust supplier of renewable energy and believe, that SGRE still has considerable potential to grow and create signi cant value.,” said Joe Kaeser, President and CEO of Siemens AG.
“2020 is a pivotal year in which climate protection has reached the top of the global agenda. We are convinced that the energy transition o ers many opportunities for Siemens Energy. With our diverse and constantly growing renewables portfolio we can deliver tailored solutions for low carbon leaders and energy seeking countries alike,” added Michael Sen, member of the Managing Board of Siemens AG and designated CEO of Siemens Energy.
SIEMENS
SOLAR
India completes largest and storage tender
India has clocked a major renewable energy milestone a er wrapping up what is being described as the world’s largest “ rmed renewables” auction, and locking in the some of the world’s cheapest prices for solar energy and storage.
e tender, launched by the Solar Energy Corporation of India (SECI) in August 2019, called for 1.2 GW of grid-connected power generation capacity with a guaranteed peak power supply, a rst for India.
e key goal was to procure assured supply of 600MW of clean power for six hours daily during peak demand hours – 5.30-9.30am and 5.30pm-12.30am – on a day-ahead, on- demand basis.
Not only was the round oversubscribed, attracting bids for 1.62GW of capacity overall, but it was highly competitive, with big hitter Greenko securing 900MW of pumped hydro storage clean power capacity for a weighted average tari of Rs4.04/kWh and a quoted peak tari of Rs6.12/kWh.
Goldman Sachs-backed ReNew Power secured the remaining 300MW in battery storage capacity, with a weighted average bid of Rs4.30 quoted peak price of Rs6.85 per kWh, a world record for renewables-plus- battery storage capacity.
For the renewable energy supplied during o -peak hours, SECI will pay a pre-speci ed tari of Rs2.88 per kWh. e tari s granted will be paid over a 25-year period.
Week 05 05•February•2020
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