The new norm, which is a prerequisite for qualifying for Banco Nacional de Desarrollo Economico y Social’s (BNDES) financing, requires manufacturers to use higher percentages of local equipment parts.
Under the regulation, wind turbines are required to be certified by BNDES, meeting at least three of the following four criteria: manufacturing of towers in Brazil, with at least 70% of the local-made steel plates or domestically-reinforced concrete; manufacturing blades in the country in their own plant or that of a third party; as well as assembly of the nacelle in their own plant; and assembly of the hub with a domestic dye-cast in Brazil.
Major suppliers such as Vestas and Suzlon were unable to bag a deal in more than 18 months as their turbines do not meet the local content requirement, consequently losing the market share in Brazil and creating an opportunity for other producers such as Alstom and Acciona that meet the necessary requirement.
Bloomberg New Energy Finance analyst Helena Chung said that Vestas and Suzlon have not bagged any orders after an August auction and may not be able to participate for two more bids in 2013.
Having received BNDES approvals, Alstom has secured contracts to cater about 11% of the turbines for the winning developers in the August auction, while Acciona is providing wind turbines totaling 290MW for Brazilian wind farms.
Earlier in 2012 BNDES disqualified five companies including Vestas, Suzlon, Acciona and Siemens from its financing program as they failed to meet local-content requirements.
