German wind energy giant to purchase equipment worth 0.5 bln euros from Turkiye

Jürgen Zeschky, Chief Executive Officer (CEO) of Germany-based wind turbine manufacturer Enercon, stated that wind energy equipment supplies from Turkiye are currently at the level of 300 million euros and said that they are planning to produce some large parts for the turbine models they have produced recently in Turkiye. He added that the equipment supply from Turkiye can reach 500 million euros.

Recently, German wind energy giant Nordex Group Chief Executive (CEO) Jose Luis Blanco stated that they supply wind energy equipment from Turkiye at the level of 600 million euros annually and announced that equipment supplies from Turkiye will approach 1 billion euros in 2024.

Zeschky answered questions after the meeting titled Wind Energy Supply Chain Challenges Solutions and Alternatives for the European Union (EU) Region, organized by the Turkish Wind Energy Association (TÜREB) and the European Wind Energy Association (Wind Europe) in the European Parliament.

Stating that Turkiye is a very attractive partner in terms of wind energy equipment supply, emphasizing its location close to Europe, Zeschky noted that the market can offer labor and affordable cost levels.

Zeschky stated that they currently produce the blades, generators, and towers of Enercon's EP3 model wind turbine in Turkiye:

"Our supply of wind energy equipment from Turkiye is currently at the level of 300 million euros annually. We plan to produce some large parts in Turkiye for the turbine models we have produced recently. We are actively working to secure the production of components for our new turbine models with local partners in Turkiye. This is something we will be doing over the next few years to build the resource footprint of our latest turbine model. So, I can say that our equipment supply from Turkiye in the next few years could reach 500 million euros. We see this in the orders we receive and see on the horizon in the foreseeable future," he noted.

Wind energy equipment costs increased by 20 percent

Stating that Turkiye and Europe can work very closely in this field, Zeschky explained that the wind energy sector has recently encountered difficulties as much as it offers opportunities.

Zeschky pointed out that wind energy equipment costs increased by 20 percent due to the impact of Covid-19 and the Ukraine war, and that this increase was due to the increase in the prices of raw materials, especially steel, copper and aluminum.

Noting that he does not expect a major decline in the commodity prices, Zeschky said that he therefore expects wind energy equipment costs to remain at the same level.

He said that the rapidly increasing interest rates recently pose a challenge in terms of financing projects.

"Interest rates are an important factor for project financing. Therefore, securing existing financing and funds at a reasonable cost is one of the factors that will help the wind industry and also the supply chain." someone." He added.

"The European wind industry needs a level playing field for supply security"

Jürgen Zeschky pointed out that the disruptions in supply chains that started with Covid-19 have been largely overcome, but that the supply chain of countries, including Europe, is largely dependent on China to ensure supply security.

Underlining that the supply chain needs to be diversified, Zeschky said,"Europe's experience in gas supply with Russia has really been a wake-up call in Europe. When we look at this from the perspective of the wind energy sector, if we want an independent and secure energy supply for the sector, we must also provide services in this field. We need people who can deliver, that is, European original equipment manufacturers (OEMs). Speaking from a wind turbine OEM perspective, what we really want is a level playing field. We see wind turbines being heavily subsidized in the US and China. Europe is an independent supply for the wind industry. If they want to create the chain, the conditions must be equal here." made said.

Enercon's wind installed capacity in Turkiye is 2.6 gigawatts

Enercon Central Asia, Middle East and Africa Region Chief Executive (CEO) Arif Günyar also noted that the company has been operating in equipment production and supply as a pioneer of the wind energy industry in Turkiye for more than 20 years.

Stating that Enercon's installed wind energy power in Turkiye is at the level of 2.6 gigawatts, Günyar added that its operations continue in project management, maintenance, service and other related engineering fields.