The largest European manufacturer of wind turbines is beating an alarm. Between the green goals of politicians and the reality in the field, there is an increasing gap. And if it does not interfere quickly, carbon neutrality by 2050 can only dream climate activists.
“There is a significant inconsistency between ambitious political goals and what is actually happening,” warns the chairman of the board of Danish giant Vestas Anders Runevad. In practice it means that the permits are missingnetwork infrastructure does not manage and the economy of projects often makes no sense.
The European Union and the United Kingdom promise to increase the capacity of wind power plants from today’s 285 to 425 gigawatts by the end of the decade, but according to A. Runevada, it looks like a “green” wish. “Promises must finally grow into real projects. Without simplifying the authorization processes, reasonable auctions and investments in the network, it will not work.”
There is another problem for this: the wind sector is throwing logs under his feet in a nonsensical plant by the largest turbine as possible.
Marketing does not help
The race in comparing the huge rotor blades of wind turbines with iconic buildings such as Eiffel Tower and the Statue of Freedom have become a popular marketing sport of manufacturers. Vestas the latest announced the construction of a factory in Poland, Where will produce blades for 15-megawatt offshore turbines-higher than the famous statue in New York. The devices that were installed twenty years ago in the first wind farms had only 0.5 MW capacity.
But there are problems behind gigantism. Larger machines mean higher costs for development, testing, logistics and repairs. Some of them have already spoiled – Siemens Energy had to issue a reduced profit outlook last year and finally applied for a rescue package of EUR 15 billion from the German government.
Technical engineers are increasingly warned that the return from further increasing turbines is declining. It all goes to reality – the sector is still recovering from the sharp rise in the prices of raw materials and disturbed supply chains after the pandemic. In 2022, Vestas had a negative free cash flow minus € 874 million. Only last year the company returned to profit with the result of 705 million.
Silent regulation
Some European developers are already quietly suggesting that the capacity of the turbine artificially stop. This would slow down the pace of development, but it could save the financially exhausted sector. But as Ben Backwell points out of Global Wind Energy Council: If Europe withdraws from the race, China will easily overtake it in innovation. There, Mingyang is already working on 18-megawatt monsters, Siemens is preparing a prototype of an even larger 14+ MW turbine.
It sounds frustrating, but the sector should stop for a while and breathe. “It is not wise to optimize the situation that is constantly changing,” says A. Runevad, adding that the market needs more certainty and less chaos.
Interest in wind power plants is still growing – Vestas only received orders for seven GW in the fourth quarter, which is half more than expected. “If we want the wind to really drive the green transformation, less marketing testosterone and more engineering reason need,” thinks the head of the largest European wind turbine manufacturer.
“I also understand the frustration of investors from falling shares,” admits A. Runevad – from 2020, they have fallen from more than 300 Danish crowns to the current 88. “We have to work on profitability and meet long -term goals.
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