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Vestas With Order Rally of More Than 1,000 MW at The End of Q2/2024

Aarhus, Denmark - Vestas is buzzing at the end of the second quarter of 2024. Last week, the Danish wind energy giant, which is listed on the RENIXX World renewable share index, reported orders with a total volume of more than 1,000 megawatts (MW).

In recent days, Danish wind turbine manufacturer Vestas has reported numerous orders from various European countries, the USA, New Zealand, Argentina and South Africa with a total capacity of 1,035 MW. This brings the total capacity of orders announced for Vestas in the second quarter of 2024 (Q2 2024) to date to around 2,900 MW (as of 01.07.24). In fact, however, the order intake in Q2 is likely to be higher, as the orders that Vestas includes in the quarterly balance sheet without a separate announcement are not yet included in the figures. The share price of the RENIXX group will not benefit.

Focus on orders in Europe in the second quarter

The largest volume in Q2 was attributable to orders from European countries with a total capacity of 557 MW. The focus here is on Germany with two orders and a total capacity of 219 MW. This is followed by Turkey with two agreements and a total capacity of 108 MW, ahead of Lithuania (99 MW), the UK (81 MW) and Spain (50 MW). In addition to plant delivery and construction, all orders include service contracts for plant maintenance.

The first order from Germany is a 114 MW order from SAB Windteam for the Ahlum-Dettum wind energy project in Lower Saxony. Vestas will supply 17 V162-6.2 MW and two V136-4.2 MW wind turbines. The second German order comes from the power plant company LEAG. The turbines with a total capacity of 105 MW will be installed at the Forst-Briesnig II wind farm in Lusatia. Vestas will supply and commission 17 V162-6.2 MW wind turbines and service the turbines.

The two Turkish orders have a capacity of 45 MW and 63 MW respectively. Vestas will supply and install 10 V150-4.5 MW wind turbines as part of the 45 MW project. The turbines ordered under the 63 MW order are intended to expand the five existing wind farms Kangal, Bereketli, Akyurt, Karaçayir and Konakpina, which are located in Sivas and Tokat in Turkey. The contract covers the delivery and installation of a total of 12 V150-4.5 MW wind turbines and two V136-4.5 MW wind turbines.

The 99 MW order from Lithuania is an EPC order where Vestas is responsible for the supply and installation of the wind turbines as well as the civil and electrical works. The project consists of 16 V162-6.2 MW wind turbines and a 35-year service contract.

For the Pencloe wind energy project in Dumfries and Galloway in Scotland, Vestas will supply, install and commission 18 V136-4.5 MW wind turbines.

In the Spanish order, the 50 MW turbines ordered by Elawan Energy - Grupo Orix are intended for several wind projects. The order includes the supply and installation of five V162-6.2 MW wind turbines and three V162-6.2 MW wind turbines with a capacity of 6.4 MW.

Orders outside Europe reach capacity of 480 MW

Last week's turbine orders from New Zealand, South Africa, the USA and Argentina have a total capacity of 478 MW. The largest order, 155 MW, comes from New Zealand. The turbines will be installed as part of the second expansion phase of Mercury Energy's Kaiwera Downs wind farm. The order includes the delivery and installation of 36 Vestas turbines of type V136-4.2 MW in the 4.3 MW operating mode as well as a 30-year service and maintenance contract. The project builds on the first phase of the Kaiwera Downs wind farm, which was also supplied by Vestas. Once commissioned, the two sub-projects Kaiwera Downs phase one and two will be the second largest wind farm in New Zealand

Vestas has received another major order with a total capacity of 144 MW from the renewable energy company African Clean Energy Developments (ACED) from South Africa. The order covers the delivery and installation of 32 V163 4.5 MW wind turbines as well as a 10-year service contract.

The order from the USA, with a total capacity of 84 MW, is for a repowering project with 38 V110-2.2 MW turbines. Finally, Vestas has also concluded an order for the Argentinian market. The order covers the delivery and installation of 21 V150-4.5 MW turbines for an undisclosed wind project in Argentina.

Share price drops

The Vestas share was unable to benefit from the numerous orders last week. In a generally weak stock market environment, the share price fell by 9.5 percent to EUR 21.71 (28.06.2024, closing price, Stuttgart Stock Exchange). Compared to the share price at the turn of the year, this represents a drop of around 24%.

Source: IWR Online, 02 Jul 2024