Nordex sees up to 4GW in Germany

Germany this year is likely to install 3GW to 4GW in new onshore wind capacity as companies rush to get wind farms built before a cap on new capacity planned by the government in Berlin kicks in, Lars Bondo Krogsgaard, chief customer officer at Nordex told Recharge.

“We will most likely see a record number of installations in Germany this year,” Krogsgaard said in an interview during the EWEA 2014 conference in Barcelona.

German energy minister Sigmar Gabriel in a draft to amend the country’s Renewable Energies Act (EEG) has proposed a cap of 2.5GW for new wind installations a year from 2015 on. The government also said it wants to cut onshore wind feed-in tariffs, as well as giving preference in support to strong wind locations.

Developers and operators are now rushing to build new wind parks before the regulatory changes are implemented, Krogsgaard said.

“Customers don’t like uncertainty, they want to do deals with a regime they understand,” he added.

A similar dynamic could happen in the UK before its Renewable Obligation scheme ends in late 2016, the Nordex board member thinks.

Krogsgaard estimates Nordex can win 100-200MW in orders in the UK per year this year and in 2015, out of a market of some 700MW to 1GW.

The company is also seeing a good potential for orders in France, Ireland and Turkey. Outside Europe, it plans to expand on business established in Pakistan, Uruguay and South Africa, and expects to do its first deals in Chile.

After closing production facilities in the US and China, Nordex has concentrated manufacturing in Rostock, northern Germany. Krogsgaard tells Recharge the savings from consolidating production there are higher than costs arising from moving materials to other parts of the world.

“We are working with higher margins than in the past. We can better automise production in Germany now,” Krogsgaard said.