The chief government of one of the world’s largest wind turbine producers warned that efforts by the EU to curb excessive power costs are resulting in a slowdown in the adoption of renewable power just as the area is trying to ramp it up. This is despite the fact that the EU is attempting to ramp it up. Henrik Andersen, chief government of Danish wind turbine producer Vestas, told the Financial Times that “every indication is that the EU and governments have spent more time in finding taxation methods or trying to limit energy prices,” which has actually slowed the process and project accruals. “Every indication is that the EU and governments have spent more time in finding taxation methods or trying to limit energy prices.”
There is now a lack of clarity around what you might anticipate achieving in terms of the pricing of your electricity. The rate at which renewable energy sources are being introduced is actually being slowed down as a result of this. “It is not enough to talk about objectives for boosting renewables,” he added. “It is not enough to talk about increasing renewables.” “The only way to address the energy problem is to take actual tangible steps, which means you need to speed up your permits and get more primary energy sources in your grid and in your supply to the consumer,” said one expert. “The energy issue can only be solved by taking real tangible acts.”
The European Union’s power ministers met in September and reached an agreement to cap revenues from wind, photovoltaic, and nuclear energy technology at $180 per megawatt hour. This decision was made as part of the ministers’ plans to slow the rise in power prices across Europe, which has been brought on by rising fuel prices. Andersen’s comments come at a time when Vestas, the company that installed the most wind turbines in 2021, has reduced its full-year profitability guidance in the wake of supply chain issues and price inflation.
Earnings for the three months that ended in September were down 29 per cent on a year earlier, coming in at €3.9 billion. The company now anticipates full-year earnings of €14.5 billion to €15.5 billion, which is a decrease from its previous projection of as much as €16 billion. The production of turbines has become more expensive as a result of inflation and the rising cost of inputs such as metal and copper. In addition, the industry is coping with supply chain delays as a result of the pandemic and the conflict in Ukraine. The problem is that the amount of power generated by the wind turbines has never been greater. According to Andersen, “the value of [wind turbines] has never been higher at any point in time.” “From an operational point of view, it is a slightly poisonous operating environment, because if the customer has delays or slowdown, then we have contentious discussions,” the author says. “This is because you might have a very attractive return on getting the turbine commissioned early or on time.”