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Despite coronavirus: Wind industry is stable and ready for politics to take action

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windenergyhamburg June newsletter

WindEnergy Hamburg, the global onshore & offshore event, has been rescheduled for 1-4 December 2020 because of the coronavirus. In a digital press conference, industry experts from all around Europe assessed the wind industry’s current situation, the effects of the pandemic and the importance of the EU Green Deal, giving an outlook on the sector’s future.

The coronavirus pandemic affects all aspects of life and the economy. At a press conference in preparation of WindEnergy Hamburg, the world’s leading wind industry expo, experts discussed the current situation and its global impact on the wind energy industry. Speakers from all around Europe participated in the conference.

The decision to reschedule WindEnergy Hamburg for December was made in May. The team at Hamburg Messe is working vigorously on the development of safety concepts to ensure a successful trade fair for exhibitors and visitors alike. In addition, the exhibition will feature both digital and hybrid presentation formats, with broad backing across the industry. “We got a lot of positive feedback from our exhibitors who support our plans for the new December dates. It gives them a more solid basis for organising and planning. So the vast majority of exhibitors and all of the big manufacturers will stay on board and the number of cancellations has actually been quite low. We are of course very happy about that and confident that we have made the right decision,” said Bernd Aufderheide, President and CEO, Hamburg Messe und Congress GmbH.

All speakers gave a positive view of the sector’s prospects while calling upon governments to take specific action. The digital discussion panel included top-level representatives from the business world, politics and industry organisations providing insights into all areas of the sector.

Global upswing despite coronavirus
While the pandemic and the resulting lockdown measures have disrupted supply chains, hampered investments and brought wind power projects to a temporary halt, energy production from existing wind farms has been stable over the past months. “Covid-19 is undoubtedly proving a challenge for the wind industry affecting the global supply chain, manufacturing and project execution. But the crisis is also showing the resilience of the sector, which has continued to provide affordable and clean energy throughout,” said Dr. Markus M. Tacke, Chairman of VDMA Power Systems and CEO of Siemens Gamesa.

Giles Dickson, CEO of WindEurope and co-organiser of WindEnergy Hamburg, pointed out that wind energy has become the most economical energy source in many parts of the world: “New models for offshore wind turbines have reached scales no one had expected some years ago, with single turbines of 12 MW and more. Floating wind is on about to getting ready for commercial market entry.”

Thorsten Herdan, Director General Energy, Federal Ministry for Economic Affairs and Energy, added: “In Germany, the electricity due to COVID-19 has pushed the share of renewables and wind energy in the electricity sector to new hights. So far, more than 55% of total electricity production in 2020 is renewable – wind alone makes up for a third of electricity production in 2020. And we have observed no problems with grid stability. This shows that our system is capable to adopt very high shares of renewables.”

Renewable energy is part of the EU recovery plan
The speakers agreed that the wind industry plays a crucial role in fighting the economic crisis caused by the coronavirus pandemic. “COVID-19 is a huge hit to the EU economy. Last week the EU Recovery Plan singled out wind and other renewables as ‘policy fundamentals of the recovery’. And wind will deliver. It is cheap, reliable and already 15 percent of Europe’s electricity. The EU wants it to be 50 percent by 2050. That means huge investments. It means investing now. It means the jobs and growth that are needed now. The EU is unleashing all its firepower to drive a green recovery – €1.85 trillion. WindEnergy Hamburg in December will show how wind can make this count,” said Giles Dickson.

Dr. Markus M. Tacke voiced an explicit call to action: “Now is the time to build on this platform by investing in a true Green Recovery that can stimulate economic growth and job creation.”

And Thorsten Herdan added: “In Germany, the electricity due to COVID-19 has pushed the share of renewables and wind energy in the electricity sector to new hights. So far, more than 55% of total electricity production in 2020 is renewable – wind alone makes up for a third of electricity production in 2020. And we have observed no problems with grid stability. This shows that our system is capable to adopt very high shares of renewables”

Positive outlook
Ben Backwell, CEO of the Global Wind Energy Council (GWEC), said that wind energy has demonstrated its dependability in the current crisis and deserves to be trusted: “The wind industry has proven itself to be resilient during the COVID-19 crisis, providing reliable and cost-competitive energy to power our society as the world is in lockdown.” China holds great promise, as well: “GWEC forecasted 2020 to be a record year for wind installations, and while the current crisis will impact these projections, we still see countries like China, the biggest wind market in the world, to surpass even our pre-COVID forecasts.” Backwell called on politics to provide support: “Governments across the world must leverage the resilience and huge potential of the wind power sector to generate investment, create jobs and renew critical infrastructure like grids and ports to power a green recovery.”

When WindEnergy Hamburg launches in six months, it will be the industry’s first gathering after the beginning of the COVID-19 crisis. The speakers were unanimous in stressing the enormous opportunities this global trade event opens up: „WindEnergy Hamburg is the worldwide platform for wind energy – both on- and offshore. On the way back to the new normal, we need to refocus on solutions and products needed for a sustainable economy, on a global scale. WindEnergy Hamburg provides the required stage and is therefore essential for our industry,” said Dr. Markus M. Tacke. Bernd Aufderheide emphasised: “WindEnergy Hamburg will be a catalyst for the energy transition. In December we will provide the wind industry with a platform to network, share key information, and work on new ideas.”

WindEnergy Hamburg from 1 to 4 December 2020
Every two years one of the most fascinating and promising industries meets for the leading global networking event for wind energy: At WindEnergy Hamburg, situated right in the heart of the vibrant northern German port city, 1,400 exhibitors will present their innovations and solutions. The event has a highly international profile, with half of exhibitors hailing from abroad. Leading suppliers of system components for all stages of the onshore and offshore wind energy value chain will provide a comprehensive overview of the market. Around 600 service providers offering everything from planning and project design to installation, operation and maintenance, and through to marketing, certification and financing will complete the picture.

The Who’s Who of the wind industry will be present, including representatives of trade associations, the science community and politics. The Expo will be accompanied by WindEurope’s conference programme featuring top-ranking experts who will address the industry’s current key topics. The comprehensive conference programme is managed by WindEurope, the co-organiser of WindEnergy Hamburg. GWEC, Global Partner of the event, will present Global Business Insights. Originally scheduled to take place from 22 to 25 September 2020, WindEnergy Hamburg 2020 has been postponed because of the COVID-19 pandemic. It will now be held from 1 to 4 December 2020.

 

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Two experienced figures in wind energy join forces for a strategic collaboration

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Two experienced professionals in Türkiye’s wind energy sector are taking their long-standing relationship to the next level through a strategic collaboration. Alper Kalaycı, Co-Founder of EnconIQ Energy Consultancy Ltd., and Levent İshak, Co-Founder of Lewind Energy Consultancy Ltd., will collaborate to develop new projects and improve the performance of existing wind power plants.

Kalaycı and İshak, whose friendship dates back to their studies at Dokuz Eylül University’s Department of Mechanical Engineering in 1991, are carrying nearly 35 years of shared experience into this new partnership. Both have been actively involved in the wind energy sector since 1998 and aim to further leverage their accumulated expertise through this collaboration.

By combining their complementary capabilities, the two will work together on both the development of new investments and the enhancement of operational efficiency in existing wind power plants.

Türkiye’s targets provide momentum for the sector

Commenting on the collaboration, Alper Kalaycı highlighted Türkiye’s energy transition:

“In line with our country’s 2035 targets, we need to increase our current wind installed capacity by approximately three times. This clearly demonstrates the strong growth potential of our sector. In the coming period, significant opportunities are expected both in new investments and in local manufacturing. With this collaboration, we aim to make more effective use of these opportunities.”

Operation and maintenance play a critical role

Levent İshak emphasized the importance of the operational phase:

“One of the most significant cost components in wind energy projects is operation and maintenance. Structuring these processes correctly from the outset, designing contracts accordingly, properly identifying risks, and managing them effectively are of great importance. Ensuring that this structure is implemented correctly during operation is critical for long-term performance. With this collaboration, we aim to create value both in structuring long-term contracts for new projects and in improving the performance of existing power plants.”

Complementary expertise, shared vision

The collaboration brings together Alper Kalaycı’s experience in manufacturing, localization, and project development with Levent İshak’s expertise in turbine supply, maintenance, service, and operations, aiming to create a strong synergy within the sector.

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ENERCON and POLAT Enerji strengthen their long-standing partnership

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ENERCON will supply wind turbine technology for another major project in Türkiye. For the “Balıkesir 1” wind farm in the northwest of the country, operator Polat Enerji has ordered 23 wind turbines of ENERCON’s new flagship model, the E-175 EP5 E2. The supply contract was signed on 27 April in Istanbul. With a total capacity of 161 MW, the wind farm is part of the YEKA 5 tender, for which Polat Enerji recently received the award from the Turkish Ministry of Energy.

“We have enjoyed a long-standing and close cooperation with Polat Enerji in the expansion of wind energy in Türkiye,” said Udo Bauer, CEO of ENERCON. “With ‘Balıkesir 1’, we will have jointly realised more than 1 gigawatt of installed capacity in Türkiye. We intend to continue this partnership for the energy transition together in the future. We are very pleased to implement the ‘Balıkesir 1’ project together using our new E-175 EP5 E2 turbine model.”

“Our journey began a quarter-century ago with an early and firm belief in Türkiye’s renewable energy potential,” said Evren Güvenç, CEO of Polat Enerji. “Today, Polat Enerji has evolved into a strategic player managing high-scale investments across Türkiye and Europe. The Balıkesir 1 project, secured through the YEKA tenders, is a testament to our continuous growth; for us, leadership is defined by more than just increasing installed capacity. We measure our progress not only by power output but by our optimisation capabilities and system flexibility. By leveraging our end-to-end expertise – from investment to operation – we are reinforcing our position as a pioneering actor shaping the transformation of the entire energy landscape.”

The E-175 EP5 E2 is ENERCON’s new top model. With a rated power of 7.0 MW and a rotor diameter of 175 metres, it is one of the most powerful onshore wind turbines in Europe in terms of energy yield. The E-175 EP5 E2 is also a central pillar of the company’s market strategy and forms the basis of the solution portfolio with which ENERCON supports its customers.

The supply agreement for the “Balıkesir 1” wind farm marks another milestone in the market launch of the E-175 EP5 E2 in Türkiye. The country is an important international strategic target market for ENERCON. To supply Turkish wind farm projects with the new E-175 EP5 E2, ENERCON will continue its proven localisation strategy with long-standing Turkish production partners and will also manufacture selected main components of the new top model in the country in the future.

“This allows us to meet the local content requirements of the Turkish tender system,” said Arif Günyar, Regional Head of the Central Asia / Middle East / Africa (CAMEA) region. “We are fully committed to the Turkish market and to the energy transition in Türkiye. We look forward to opening a new chapter of cooperation with Polat Enerji as well as with other Turkish customers and interested parties.”

Construction of the “Balıkesir 1” wind farm is scheduled to begin in September 2027, with commissioning expected by the end of December 2027. A total of 23 wind turbines will be installed on steel towers.

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Mature Capital Provided Advisory Services for the Gülle Wind Power Plant Project

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Gülle Entegre Tekstil İşletmeleri, one of Türkiye’s leading integrated yarn and fabric manufacturers with 55 years of experience, has signed a wind turbine supply and service agreement with Goldwind for the Gülle Wind Power Plant (WPP) Project. The project aims to meet the energy consumption of its production facilities located in Ergene, Tekirdağ.

According to the agreement, the project, located in the Ergene district of Tekirdağ, will utilize Goldwind’s GW155-4.8MW turbine model, featuring a hub height of 110 meters, a capacity of 4.8 MW, and a rotor diameter of 155 meters. The agreement also includes a 10-year full-service package covering maintenance and availability services.

The Gülle WPP Project is planned to be commissioned in December 2026. Upon completion, the plant is expected to reach an annual electricity generation capacity of approximately 16 million kWh.

Mature Capital has provided two-phase advisory services to Gülle Entegre Tekstil from the initial concept stage of the investment. In the first phase, project development, advisory services included the preparation of economic and technical feasibility studies in line with current investment conditions, as well as strategic and procedural guidance on regulatory and permitting processes (such as EPDK, EIA, zoning, and grid connection procedures).

In the second phase, once the project reached a certain level of maturity in terms of permits, Mature Capital provided advisory services for wind turbine selection, final supplier decision-making, and the negotiation of turbine supply and service agreements.

Habib Babacan, General Manager of Mature Capital

Habib Babacan, General Manager of Mature Capital

Commenting on the agreement, Habib Babacan, General Manager of Mature Capital, stated:

“We are very pleased to see the outcome of our efforts and work materialize with this important agreement, which marks the realization of our approximately three-year collaboration with our investor, Gülle Entegre Tekstil.

We would like to thank the Goldwind Türkiye team for their cooperation and support during the contract phase, and our investor Gülle Entegre Tekstil for their trust in Mature Capital. We wish the Gülle WPP Project to be beneficial for both parties.”

About Mature Capital

Since 2022, Mature Capital has been exclusively focused on the wind energy sector, providing advisory services to investors in the areas of business development, project development, strategy formulation, and project transfer (M&A) for wind power projects.

In its fourth year of operation, the company has continued to expand its activities and has successfully completed 18 advisory projects with 15 different investor groups since its establishment.

Mature Capital will continue to provide high-quality and reliable services to wind energy investors in Türkiye.

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