Siemens Energy, an integral part of global electronic and electrical engineering company Siemens AG , recently procured a contract for wind turbines for an on-shore wind-power facility in Peru from Spanish wind developer Cobra Energia. The order will enhance Cobra Energia's wind power generation capacity in Peru by 97 megawatt (MW).
The new wind-power project named Tres Hermanas is located in San Juan de Marcona and includes a combination of 25 direct drive SWT-3.0-108 wind turbines and 8 geared SWT-2.3-108 units. In addition to the wind turbines, Siemens Energy has also signed a 6-year service and maintenance agreement for the project, which is likely to be commissioned in Jul 2015.
Cobra Energia has long-serving business ties with Siemens. Earlier in Sep 2013, Cobra Energia purchased 11 Siemens wind turbines with a total capacity of 32.1 MW for the Marcona wind project. The Tres Hermanas project will be located adjacent to the Marcona wind project. Siemens will manufacture blades and geared nacelles for the turbines of Tres Hermanas project at its United States plants in Iowa and Kansa.
The repeat order from Cobra Energia will help both the companies to expand their wind power activities in Peru and provide clean renewable energy to more than 90,000 households. The project is in line with Peru’s energy goals to reduce its dependence on natural gas and decrease carbon dioxide emissions. With this order, Siemens is likely to strengthen its position as one of the leading global providers of green energy.
Siemens’ Energy business segment comprises Power Generation (PG), Power Transmission & Distribution (PTD) divisions, Fossil Power Generation, Renewable Energy and Solutions for the Oil and Gas Industry.
The PG division offers services and products, such as the planning and construction of power plants, the manufacture and installation of components and systems, power plant upgrades, energy management systems, and fuel cells.It also supplies turbines, compressors, and complete solutions for industrial plants, particularly in the oil and gas industry. The PTD Division is a manufacturer, systems integrator and provider of solutions and services for the power utilities and industry customers, which enables utilities to transport and distribute electricity.
Siemens presently has a Zacks Rank #2 (Buy). Other players in the industry worth considering include GrafTech International Ltd. carrying a Zacks Rank #1 (Strong Buy), along with Garmin Ltd. (GRMN - Analyst Report) and Trimble Navigation Ltd. (TRMB - Analyst Report), both carrying the same rank as Siemens.