- Email: [email protected]
E.ON and Siemens sign 1,150 MW deal
News/Roundup
Silicon prices to drop 43% in 2009 The price of polysilicon is set to drop by up to 43% next year, according to the New Energy Finance Silicon and Wafer Price Index, which was recently launched by analysts New Energy Finance. The analysis shows that shortages and production bottlenecks in these key materials in recent years have kept the cost of photovoltaic (PV) modules some 37% higher than would otherwise have been the case. Despite this, the number of new PV installations worldwide soared by 56% in 2007, and is set to rise a further 50% in 2008. The data for the Index covered wafer volume equivalent to approximately 1.7 GW of PV modules, plus polysilicon data equivalent to approximately 6 GW. The key findings include: N The median forward price for polysilicon deliveries in 2009 is 43% lower than
the median contract price for deliveries in 2008; N The forward contract price for polysilicon falls for each year from 2008 to
2015, to below US$67/kg by 2013, a full 67% below current median prices. This is, however, still higher than the historical low spot prices between 2002 and 2004; N The median forward price for multicrystalline wafers will hold at approximately the same level in 2009 as currently, indicating that the wafer supply situation is not expected to free up as quickly as polysilicon supply; N Over the next five years, median forward contract prices for wafers drop by 41%, compared with a drop of 67% in forward polysilicon contracts, further suggesting that margin will shift from polysilicon refining to wafer manufacturing; N The median forward contract wafer price falls below US$6/piece (US$1.62/W) only from 2011, with implications for the speed and cost reductions in PV power.
E.ON and Siemens sign 1,150 MW deal E.ON and Siemens have announced a €1 billion deal for 1,150 MW worth of wind turbines. Siemens will supply E.ON with 500, 2.3 MW wind turbines of various heights and rotor diameters. “This agreement with E.ON is the largest single wind power deal Siemens has ever signed in its history,” says René Umlauft, chief executive officer of the Renewable Energy Division in the Siemens Energy Sector. “The new partnership between E.ON and Siemens is not only to the great benefit of the two companies. The cooperation also marks an important step in the remarkable evolution of wind power as a mainstream energy source.” The turbines will be installed at new E.ON projects in the USA and Europe in 2010 and 2011. 600 MW are reserved for US projects, and 550 MW for European wind farms. E.ON will place individual orders with Siemens for each project on the terms agreed in the framework agreement. Separate from this deal, E.ON placed a €275 million order with Siemens Energy in October for the supply of 90 wind turbines for the 207 MW Rødsand II offshore wind farm off the coast of Denmark. The project will be among the largest offshore wind farms in the world when the 90, Siemens 2.3 MW turbines are installed in 2010. The order also includes a two-year service contract. Rødsand II will be located 3 km to the west from the existing 165.6 MW Rødsand I offshore wind farm, which was connected to the grid in 2003. Rødsand I consists of 72 Siemens 2.3 MW turbines and is jointly operated by E.ON and Danish DONG Energy. renewable energy focus
November/December 2008
17
Silicon prices to drop 43% in 2009 The price of polysilicon is set to drop by up to 43% next year, according to the New Energy Finance Silicon and Wafer Price Index, which was recently launched by analysts New Energy Finance. The analysis shows that shortages and production bottlenecks in these key materials in recent years have kept the cost of photovoltaic (PV) modules some 37% higher than would otherwise have been the case. Despite this, the number of new PV installations worldwide soared by 56% in 2007, and is set to rise a further 50% in 2008. The data for the Index covered wafer volume equivalent to approximately 1.7 GW of PV modules, plus polysilicon data equivalent to approximately 6 GW. The key findings include: N The median forward price for polysilicon deliveries in 2009 is 43% lower than
the median contract price for deliveries in 2008; N The forward contract price for polysilicon falls for each year from 2008 to
2015, to below US$67/kg by 2013, a full 67% below current median prices. This is, however, still higher than the historical low spot prices between 2002 and 2004; N The median forward price for multicrystalline wafers will hold at approximately the same level in 2009 as currently, indicating that the wafer supply situation is not expected to free up as quickly as polysilicon supply; N Over the next five years, median forward contract prices for wafers drop by 41%, compared with a drop of 67% in forward polysilicon contracts, further suggesting that margin will shift from polysilicon refining to wafer manufacturing; N The median forward contract wafer price falls below US$6/piece (US$1.62/W) only from 2011, with implications for the speed and cost reductions in PV power.
E.ON and Siemens sign 1,150 MW deal E.ON and Siemens have announced a €1 billion deal for 1,150 MW worth of wind turbines. Siemens will supply E.ON with 500, 2.3 MW wind turbines of various heights and rotor diameters. “This agreement with E.ON is the largest single wind power deal Siemens has ever signed in its history,” says René Umlauft, chief executive officer of the Renewable Energy Division in the Siemens Energy Sector. “The new partnership between E.ON and Siemens is not only to the great benefit of the two companies. The cooperation also marks an important step in the remarkable evolution of wind power as a mainstream energy source.” The turbines will be installed at new E.ON projects in the USA and Europe in 2010 and 2011. 600 MW are reserved for US projects, and 550 MW for European wind farms. E.ON will place individual orders with Siemens for each project on the terms agreed in the framework agreement. Separate from this deal, E.ON placed a €275 million order with Siemens Energy in October for the supply of 90 wind turbines for the 207 MW Rødsand II offshore wind farm off the coast of Denmark. The project will be among the largest offshore wind farms in the world when the 90, Siemens 2.3 MW turbines are installed in 2010. The order also includes a two-year service contract. Rødsand II will be located 3 km to the west from the existing 165.6 MW Rødsand I offshore wind farm, which was connected to the grid in 2003. Rødsand I consists of 72 Siemens 2.3 MW turbines and is jointly operated by E.ON and Danish DONG Energy. renewable energy focus
November/December 2008
17