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Siemens demands cost cuts for offshore transformer stations

Germany, Munich: Siemens demanded cost cuts from suppliers of offshore-wind infrastructure as the company expects the sea-based turbine installations worldwide to grow.

Yesterday, Henrik Stiesdal, chief technology officer for Siemens Wind Power, said at a Hamburg conference that prices for transformer platforms that can reach €80 million ($100 million) must fall to make generating offshore electricity cheaper.

He added that the design of current transformer platforms is “not long-term viable” and the transformers which are often equipped with helicopter pads, are too costly so Siemens has looked at alternatives.

Industry lobbies BDEW and VDMA Power Systems said yesterday in a joint statement that the world market for onshore turbines is expected to grow by a quarter this year and 5% the following year, reports Bloomberg.

It is estimated that Turkey, South Africa and Japan will reach 500 MW of new installations a year while local content rules may make growth difficult for Brazil according to Andreas Nauen, CEO of Suzlon Energy (SUEL) Ltd.’s German unit Senvion SE.

Source: Bloomberg