Siemens explores local sourcing options in Brazil

BRAZIL: Siemens has said it is still undecided on what approach to take towards Brazil's strict local content regulations.

by Alexandre Spatuzza 5 September 2013

The German company is currently producing 205 turbines to supply several projects with a total combined capacity of 470MW in 18 separate projects.

Speaking to “uåX˜äŠÊ˜·³Ç, Siemens renewable energy director Eduardo Angelo said the company was currently investigating supply options.

Angelo said: "It will depend on which [approach] can prove to be the most competitive in the Brazilian market. If our solution is not competitive, I cannot deliver what my client needs: to meet costs determined by the tariffs".

He said there are 100 to 150 specialists working to find out which is the best equipment before filing the paper work to Brazilian development bank BNDES proving local content.

BNDES changed content requirement rules in 2012, making it more difficult for to qualify for the cheap Finame financing. The new rules were put in place for all contracts signed from 2011 onwards. Contracts signed before then follow the old rules.

"Finame 2 is about raw materials, supplies and components", said Angelo.