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The Blue Circle, Vestas in 1GW wind tie-up

The Singaporean renewable energy specialist and the wind turbine manufacturer plan to focus on Thailand, Vietnam and Indonesia.

The Blue Circle, a Singapore-based renewable energy project developer, and Vestas Wind Systems (Vestas), a turbine manufacturer based in Denmark, have signed an agreement to develop a project pipeline of up to 688 megawatts (MW) across Southeast Asia.

According to the five-year plan set out in the agreement, the team will have its initial focus on Thailand and then explore further wind power opportunities in Vietnam and Indonesia.

Vestas will provide engineering services, wind measurement, and transportation assessment while The Blue Circle will focus on identifying greenfield sites, pursuing project development milestones up until financing and operating the generating assets.

Vestas will be the preferred, but not exclusive, supplier of turbines to The Blue Circle.

“This agreement shows Vestas’s commitment to help make wind power happen in Southeast Asia following the rest of the world’s six-fold increase of wind installed capacity during the last 10 years,” said Olivier Duguet, chief executive officer (CEO) of The Blue Circle.

“Having Armstrong Asset Management as shareholders, EREN Renewables as development partners and Vestas Wind Systems as preferred technology providers will build a strong ecosystem of world and Southeast Asia leaders for our teams in Singapore and across the region to build success upon,” said Duguet.

He added that Armstrong Asset management has a nine percent stake in The Blue Circle, with a convertible loan enabling them to go higher.

“Vestas is honoured to be chosen as preferred technology partner by The Blue Circle for their projects being developed in Thailand, Vietnam and Indonesia. We look forward to working with our partners in the coming years to unlock these wind power opportunities,” said Anders Runevad, Vestas’s group CEO and president.

The Blue Circle currently has a portfolio of projects under development of over 1 gigawatt (GW) in Thailand, Vietnam, Cambodia and Indonesia.

Out of 318GW of the world’s wind power installed capacity counted by the Renewable Energy Policy Network for the 21st Century (REN21) at the end of 2014, only 0.5GW was installed in Southeast Asia – far less than the 92GW installed in China and the 20GW in India.

As pointed by the International Energy Agency in its Southeast Asia Energy Outlook report, the region’s energy demand, with its 600 million inhabitants, is expected to increase by 80 percent between today and 2035, a rise equivalent to the current demand of Japan.

The figures highlight the need to integrate more renewable power into the region’s energy mix, suggested Duguet.