Vestas Targets Growth in China, India and Brazil
Vestas Wind Systems, the largest wind turbine manufacturer, seller, servicer and installer in the world, is targeting growth in China, India and Brazil, which collectively account for more than half of the global wind system demand. Currently, Vestas has less than a five percent market share in those countries, compared with more than twenty percent in Europe and the United States.
The Danish company is defiantly battling back from years of losses caused by overcapacity, heightened competition and falling demand. In a restructuring effort, Vestas has cut more than 5,000 jobs, closed plants and sold unprofitable businesses.
Vestas Chief Sales Officer Juan Araluce commented by saying, “While Vestas has a strong position in new markets and mature markets, there is room for improvement in China, India and Brazil.” Vestas has hired three new managers to head up its efforts: Ruben Lazo in Brazil, Chris Beaufait in China and John Hammer in India. The company has plans to cut the cost of its wind turbines in China by using more local content in its manufacturing.
Araluce indicated that the company was motivated to expand their service area by increased customer confidence. “We have improved, our reputation is back on track, satisfaction is generally stable, and 85 percent of respondents call Vestas a top-two supplier,” he said.
Vestas shares lost 96 percent of their value in the wake of the financial crisis, as subsidies for green energy were disappearing as competition grew. But the stocks have rebounded strongly over the past eighteen months, and year-to-date, they are up 83 percent.
The company posted its third straight annual loss in December but made an unexpected return to profit in the first quarter of 2014. They expect revenue for the year to be at least 6 billion euros and predict an operating profit margin before special items of at least five percent and free cash flow of at least 300 million euros.
Chief Executive Anders Runevad recently told Reuters writer Shida Chayesteh the company was not changing its indications for the year as a whole. “We will come back to that when we release the report for the second quarter,” Runevad said.
“The most important focus... is to execute on our plan. What we represent here is the long-term plan- three to five years. We have done a quarter and we have a good platform to stand on, but there's a lot of work that remains.”
W3 Energy signs technical operations contract with Luxcara
The wind farm, located outside of Piteå in northern Sweden, plans to have 137 wind turbines on full installation, with an expected capacity of more than 750 MW.
W3 Energy will be responsible for onsite technical operations management and local accounting services as well as operation and maintenance of the electrical infrastructure and transformer stations.
"This contract strengthens our position as a key player in onsite technical operations management. The Önusberget wind farm is the largest single-site wind power project in Europe and we are proud that Luxcara gives us the trust to support with the operational management of their investment", says W3 Energy's COO André Sjöström.
"The contract with Luxcara is extremely important to us and means that we take a firm grip on our home region. This contract allows us to continue to grow and we plan to continue to recruit in Piteå, Umeå, and Skellefteå."
The new contract with Luxcara means that W3 Energy manages approximately 15% of the renewable energy produced in Sweden and lays the foundation for continuing to build growth in other regions.
"Luxcara is an internationally respected asset manager in renewable energy, with high-quality investment criteria and a strong focus on diversity and sustainability. We share their view on sustainability, with a strong focus on environmental as well as social and ethical aspects", stated W3 Energy's CEO Pär Dunder.
Its past engagement with W3 combined with their track record from other large projects and their local experience were decisive factors for choosing W3 Energy, according to Philip Sander, Managing Director of Luxcara.
Global Wind Day will be held tomorrow (June 15), to promote wind's potential to reshape our energy systems, decarbonise economies and boost jobs and economic growth.
Onshore wind is now the cheapest form of new power generation in most of Europe, and offshore wind is not far behind with costs having fallen over 60% in three years, according to WindEurope.
Adrian Timbus, ETIPWind Chairman, said: “Wind energy can help electrify 75% of Europe’s energy demand and thereby deliver climate neutrality by 2050. But we must prioritise the development of the necessary technologies: next generation onshore and offshore turbines, electrification solutions for transport and for industry, and electrolysers for renewable hydrogen.”
Poland leads Europe's wind growth
Poland saw Europe's biggest increase in wind turbine energy production between 2000 and 2018, according to a Save on Energy study, and produced the fourteenth highest percentage of electricity by wind power overall in 2018.
Czechia has seen second highest percentage increase in electricity production generated by wind power. Despite having the second lowest proportion of electricity generated by wind power in 2018, the country previously produced the lowest percentage overall in 2000, so it has still seen a significant increase in wind turbine energy production over the years.
France has the third largest increase in wind turbine energy production throughout the period studied, with electricity production generated by wind power increasing from 0.009% in 2000, to 4.9% in 2018, while neighbouring Belgium experienced the fourth highest increase in wind energy production, with almost 10% of electricity produced being generated by wind power in 2018, compared to 0.02% in 2000.
Although Ukraine boasted the lowest percentage of electricity produced by wind turbines in 2018 (0.7%), the country had the fifth largest percentage increase since 2000, since only 0.003% of electricity production was generated by wind turbines.
By comparison, Denmark, Luxembourg and Spain each ranked as having the lowest percentage increases when it came to the percentage of electricity production generated by wind turbines between 2000 and 2018, and they lag considerably behind other European nations.
The EU wants wind to account for 50% of the continent's electricity by 2050. The Romanian Wind Energy Association recently launched a Code of Good Practice for renewable energy.
Top 10 countries in Europe for wind growth