German wind energy giant Nordex Group Chief Executive Jose Luis Blanco stated that they supply wind energy equipment from Turkiye at the level of €600 million annually, and announced that equipment supplies from Turkiye will approach €1 billion in 2024.
Blanco answered their 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 (TUREB) and the European Wind Energy Association (Wind Europe) in the European Parliament.
Stating that Turkiye is one of the largest supply chain centers for their companies, Blanco said that they supply wind energy equipment from Turkiye at the level of 600 million euros annually and that most of this supply is used in western, central and northern Europe.
Blanco stated that the supply chain competitiveness and ecosystem in Turkiye is strong
Stating that they are the leader in the market with 3.2 gigawatts of wind energy installed power in the country, Blanco said, “Turkiye is the largest source and supplier of our steel towers worldwide. We plan to increase our equipment supply from Turkiye. We predict that our total product supply, which is currently at €600 million, will approach €1 billion in 2024 with double-digit growth.”
Blanco pointed out that Turkiye is a critically important market not only for his company but also for Europe and the sector, and said, “I think it would be beneficial for Europe to increase its mutual dependence in the sector with Turkiye and move to a common market structure. The closer we get to a common market structure, the better it will be for both the industry and the company. For this reason, we argue that any obstacles that may come in the way of the sector in trade agreements between the European Union and Turkiye should be removed as much as possible.”
“Resilient supply and electricity system is critical to national security”
Evaluating the difficulties encountered in the supply of wind energy equipment in the world and in Europe, Blanco explained that the length of permit processes, high inflation and the fact that tender structures are not indexed to inflation put a strain on the sector.
Stating that there is no inflation in China, on which the whole world is highly dependent on equipment supply, Blanco continued his speech as follows:
“This accelerates the trend of more such investments in China. However, the EU wants a resilient supply chain and economy. We need to see how the EU support package for wind energy equipment will work and what the concrete measures will be. If your electrical system is not resilient, you will not have a resilient economy. If you don’t have a resilient supply chain, you don’t have a resilient electrical system. This is critical for national security. (If dependence on China for equipment supply is not reduced) The situation could be much worse than what Europe is experiencing with Russia for gas. Russia has cut off gas, economies and families are suffering from this, but there is security of supply. If the industry remains dependent on a single source of technologies critical to society, national security and the electricity system, it will be a major strategic mistake by policymakers.”
Blanco added that as policies support the formation of a resilient sector, the necessary measures will be reflected in the market and profit-making companies will encourage their suppliers to invest more in Europe.
50% turnover growth target in Turkiye
Nordex Turkiye and Middle East Region Vice President and General Manager Ender Ozatay reminded that the company’s installed power in wind energy in Turkiye is 3.2 gigawatts. “We are growing this by double digits every time. The growth we foresee in Turkiye for 2024 is over 50% in terms of turnover.”
Sharing the information that wing production in Turkiye continues in a 6-line facility and that they have established 2 new additional production lines, Ozatay stated that these lines were established to meet the company’s growth in 2024 and 2025.
Source: Trthaber / Prepared by Irem Yildiz