Siemens AG (NYSE: SI) has signed the largest single wind power deal in the company’s history with German utility E.ON AG (EON.L).
Under the agreement Siemens Energy, a unit of Munich-based Siemens, will supply 500 wind turbines with the capacity of 1,150 megawatts (MW) for planned projects in Europe and the U.S. in 2010 and 2011.
Financial terms of the deal were not disclosed, but the companies said that each turbine will have a capacity to generate 2.3 MW.
"This agreement with E.ON is the largest single wind power deal Siemens has ever signed in its history", said Rene Umlauft, chief executive of Siemens’ renewable energy division, part of Siemens Energy.
"The new partnership between E.ON and Siemens is not only to the great benefit of the two companies. The cooperation also marks an important step in the remarkable evolution of wind power as a mainstream energy source."
"This agreement represents a major milestone in the supply chain strategy for E.ON’s renewables business", said Frank Mastiaux, CEO of E.ON’s climate and renewables unit. "This makes a significant step in the industry`s journey from boutique to industrialization."
E.ON will place individual orders with Siemens for each project on the terms agreed in the framework agreement.
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