Vestas wind turbine manufacturing launched in Russia

Published: 25.05.2018

The first nacelle manufacturing plant in Russia opens in Nizhny Novgorod Oblast.

Vestas wind turbine manufacturing launched in Russia

On April 18, Vestas opened a company for manufacturing wind turbine nacelles in the city of Dzerzhinsk of Nizhny Novgorod Oblast (Russian Federation). The new plant is part of ambitious plans to develop Russia's own wind power industry and associated sectors. The company was co-built on the Liebherr site by Vestas' Russian branch and Rusnano. The opening ceremony was attended by Gleb Nikitin, Acting Governor of Nizhny Novgorod Oblast, and top managers of Liebherr, Vestas and Rusnano (Anatoly Chubais, head of Rusnano, made a speech via video).

The plant built with about RUB 350 mn of investments, will manufacture nacelles for wind turbines of the new Vestas 4 MW platform.  In 2019, it will begin deliveries to the construction of a 50 MW wind power plant in Ulyanovsk Oblast. It is emphasized that Vestas is already cooperating with AeroComposit Company from Ulyanovsk, which will manufacture wind turbine blades; they also work on the issue of manufacturing turbine towers in Taganrog.

Since the Russian wind energy market is, in fact, underdeveloped and underserved, it attracts many international producers of wind energy equipment. The current legislation sets the minimum local content in equipment manufacturing and wind farm construction at 65%, which prompts foreign manufacturers to launch their equipment manufacturing in Russia. According to the Russian Association of Wind Power Industry (RAWI) 2.4 GW of total wind capacity will be put into operation in Russia in 2018-2022. Besides, a tender will be held in May 29 – June 9 for construction of wind farms with additional total capacity of 870 MW to be put into operation by 2023. Such high figures are explained by the fact that, owing to the legislative support, wind farm developers in Russia may expect 12% profit over 15 years, which, as RAWI experts emphasize, may help raise about RUB 500 bn of investments into the Russian wind power sector by 2024.

Hence, it may be assumed that the wind power industry in Russia will develop substantially by 2024.    Moreover, the expanded manufacturing of wind turbine components and wind farm construction in Russia will also drive up volumes of orders from crane operators, construction and installation contractors, design institutions and logistics companies.  As a result, wind energy development will also spark the development of related industries.

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