Dec 12, 2012

The BNDES has improved its rules to license and verify the local content of wind turbines manufactured in Brazil. The new method sets physical targets to gradually increase the number of domestic components in the equipment, which will have to be accomplished by the manufacturers according to a previously established schedule.      

With the changes, the purpose of the Bank is to work in partnership with entrepreneurs and manufacturers to gradually expand local content in wind turbines, to foster manufacturing of components in Brazil with high technological content and extensive use of manpower, while sophisticating the domestic production sector and creating high-quality jobs.

In the past, the BNDES used to work with a minimum nationalization index. From now on, manufacturers who wish to be certified will have to comply with the minimum manufacturing phases for the initial date, 1/1/2013, from which deadlines to accomplish the following phases will be established. At the manufacturer’s discretion, stages may be brought forward, including requirements set for the initial date.
       
To be certified for the initial date, manufacturers of the so-called wind turbines with a step-up gear box will be expected to meet at least three of the four criteria listed below:
• Manufacturing of towers in Brazil, with at least 70% of the steel plates manufactured in the country or domestically-reinforced concrete;
• Manufacturing of blades in Brazil in their own plant or that of a third party;
• Assembly of the Nacelle (main part of the wind turbine) in Brazil, in their own plant.
• Assembly of the hub (part that houses the Nacelle) in Brazil, with a domestic dye-cast;

For manufacturers of wind turbines without a step-up gearbox, the initial requirement of the hub assembly in Brazil is replaced with the manufacturing of wind turbines in their own plant in the country, with a domestic silicon steel plate magnetic core and copper coil. By adhering to the initial target date, manufacturers are committed to gradually increase local components in their production processes, reaching all the stages by January 2016. The scope of the entire process will be monitored by the BNDES’ technicians, who will make periodic technical inspections to manufacturing facilities to check the schedule in progress.

To read the entire text of the new rules click here.