Vattenfall and Siemens said Friday they have signed a two-year framework agreement for the supply of wind power plant.
In 2009 and 2010 Vattenfall will purchase 170 MW of wind power plant from Siemens to an order value of SEK1.6 billion.
The agreement is unique in the Nordic region and a basic prerequisite for the expansion of wind power.
"The agreement means that we are freeing up the supplier bottleneck for wind power plant. This will enable us to implement our drive to increase the proportion of renewable energy by the further expansion of wind power," says Anders Dahl, Head of Vattenfall Windpower.
Vattenfall's target is to expand wind power production in the Nordic region by 8 TWh within a ten-year period. That is the equivalent of around 1,000 wind power plant and domestic electricity to 1.6 million homes.
Vattenfall is researching suitable areas to establish wind farms both onshore and offshore in the Nordic region.
Lillgrund, the largest wind farm to date in Sweden and the world's third largest offshore wind farm, recently started production of electricity.
Vattenfall has around twenty larger wind power projects in progress Friday. This number is increasing each month.
However there is tough competition for wind power plant from other energy companies and entrepreneurs in Europe and worldwide. Which means their availability is crucial for its plans.