Citing a failure to comply with local-content requirements, the Brazilian Development Bank (BNDES) says that it will no longer provide financing to five wind turbine manufacturers.
According to the Brazilian Wind Energy Association, Vestas Wind Systems, Suzlon Energy, Siemens AG, Acciona SA and Fuhrlander AG have not reached the 40% threshold of content procured from local suppliers and are no longer eligible for BNDES financing, the country's only source of loans for turbines.
BNDES says it will no longer provide financing for the turbine makers because the OEMs have not established the domestic supply chain. The association notes that developers will either suspend construction on projects or switch vendors.
Wind-turbine installations in Brazil may almost triple to 1,695 MW this year from 2011, making it the fifth-largest market, according to Bloomberg New Energy Finance.
