GE Wins $1.4B Wind Turbine Deal - Analyst Blog
General Electric Company (GE) announced that it has received a $1.4 billion contract from independent power producer Caithness Energy to supply wind turbines and provide services for an 845-megawatt (MW) wind farm project to be located in Oregon.
The wind farm, called Shepherds Flat, has received the majority of the necessary government permits to operate and is ready to be built. When completed, it will be larger than any wind farm currently in operation around the globe.
Stretching across 30 square miles of Gilliam and Morrow Counties in north-central Oregon, near the town of Arlington, the 845-megawatt Shepherds Flat project marks the US debut and largest single global order of GE’s 2.5xl wind turbines. A total of 338 turbines will be installed in 2011 and 2012.
The 2.5-MW wind turbine is the latest evolution of GE’s wind turbine technology and provides customers with greater efficiency, reliability and grid connection capabilities. The 2.5-MW builds upon the success of GE’s 1.5-MW wind turbine, the world's most widely deployed wind turbine with more than 12,000 installed.
Caithness Energy estimates that the $2 billion project will inject $16 million annually of direct economic benefits into Oregon, and will employ 400 workers during construction and 35 during operation.
GE Energy Financial Services -- with a portfolio of more than 40 wind farms with a total capacity to produce more than 6 Gigawatts of electricity -- is investing in the project.
Under three 20-year power purchase agreements, the Shepherds Flat wind farm will supply renewable energy to Southern California Edison, an Edison International (EIX) company.
The project will help California meet both its capacity needs and renewable energy goals. With the capacity to generate two billion kilowatt-hours per year of renewable energy, the wind farm will represent more than one-tenth of Southern California Edison's overall renewable energy portfolio.
GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. Major competitors include United Technologies Corporation (UTX) and Siemens AG (SI).
We currently have a Neutral recommendation on GE.
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