Sponsored Links:
Sponsored Links:
Brazil’s requirement that wind turbine suppliers buy locally is increasing costs for providers from Vestas Wind Systems to Suzlon Energy, who say the rule will probably drive away some companies. Turbine makers must buy or make all of their main parts domestically for buyers of the equipment to be eligible for cheap loans from state development bank BNDES. To comply with rules announced last December, some companies will have to build factories that may cost more than $96 million (R883m), Bloomberg New Energy Finance estimates. The turbine firms are reconsidering investments after flocking to Brazil, poised to be the fifth-largest market for wind energy this year, when US and European government subsidies were withdrawn or revised. More than half of the 13 suppliers operating in Brazil might opt out as margins were squeezed, Suzlon said. “Money is hard to come by – you need a solid case to justify what you’re doing here,” Paulo Fernando Gaspar Soares, the chief executive of Vestas’s Brazilian unit, said. - Bloomberg
) and select "Flag as inappropriate". Our moderators will take action if need be.
 |
 |
 |
 |
Services
Buying a car has never been easy. Motoring.co.za contains a large database of car listings with a user friendly search.
Start searching today »
Financial Tools
Business Directory
You are here: IOL / Business / International / 'Brazil supply rules stifle wind firms'
We like to make your life easier
Mobile
Browse IOL on your phone at m.iol.co.za.
Newsletters
Subscribe to our newsletters. News delivered to your inbox!
