The Wind, Oil and Gas vision expresses Vestas’ ambition of assuming leadership in the efforts to make wind an energy source on a par with fossil fuels. Modern energy currently accounts for less than 2 per cent of the world’s electricity production. Vestas expects that this share will have risen to at least 10 per cent by 2020, equal to an installed capacity of at least 1,000,000 MW, against 122,000 MW at the end of 2008. Vestas’ expectations are underpinned by official targets and initiatives around the world. One million MW calls for an extension and renewal of the power grid especially in the EU and the USA to allow wind power to be transmitted over long distances and often across national borders.
Vestas is making a dedicated effort to keep wind power at the top of the global energy agenda, as modern energy is presently the best solution to the climate and energy challenges and also creates thousands of local jobs in the short term. However, a key prerequisite is having long-term, stable national schemes that provide the industry with the necessary opportunities to plan and invest in employees, technology and production facilities.
Before June 2010, each EU country must hand in its National Action Plan for reaching the EU target of achieving 20 per cent renewable energy by 2020, and this will consolidate the position of wind power at the top of the agenda. The offshore market is progressing well, which stresses the importance of Vestas’ continued focus on this segment.
In the USA, the ITC Grant from the Department of Energy, in addition to the extended PTC scheme, will stimulate demand and re-establish the USA as the world’s largest single market in the short term. The revitalisation of the US market vindicates Vestas’ decision to make huge investments in production capacity in the USA, where by the end of 2010, Vestas will be able to manufacture 4,000 blades, 1,500 nacelles and 1,100 towers each year. A national renewable energy standard (RES) will ensure long-term stability for the US market, underpinning the large number of local state targets.
In China, the fixing of wind power tariffs supports the continued development of the wind turbine market, which is driven by China’s ambitious climate targets.
In India, demand will be driven by a number of new initiatives supporting investments in renewable energy. In the foreseeable future, several states are expected to implement targets for renewable energy which will secure further future growth.
In Japan, the new government’s ambition to reduce CO2 emissions by 25 per cent relative to the levels of 1990 before 2020 bodes well for wind power investments. The introduction of tariffs for renewable energy will contribute to propelling developments in the Japanese market.
The Australian market is once again witnessing a positive trend. Green energy ranks high on the political agenda in Australia, as underlined by the defined target that 20 per cent of energy consumption must be covered by renewable energy sources by 2020.
Vestas is confident that a fixed price for CO2 would promote the necessary climate investments because it would provide industrial and financial investors with a higher degree of predictability than the present quota system, which leads to large fluctuations in the price of CO2. Vestas hopes that the COP15 Climate Summit in Copenhagen in December 2009 will confirm the positive developments of the past few years as energy and the climate are pivotal in terms of economic development and security policy all over the world, with access to water playing an increasingly important role. Wind power emits no CO2 and consumes no water, and more than 80 per cent of a V90-3.0 MW turbine can be recycled.
