 |
Courtesy
of Vestas A/S
Ditlev Engel, CEO of Vestas |
When Ditlev Engel received the call to become the
new CEO of Vestas, after working for 20 years for
Hempel, a coatings and paint manufacturer, he had
to accept. Mr. Engel was aware of the huge potential
in Wind Energy, "this was an opportunity I
could not pass up. Wind is an unpolished diamond
and Vestas is undoubtedly the world leader in wind
technology," said Engel.
Since being appointed, Mr. Engel has been kept
busy. Wind turbines are spreading across the world
pushed by fears of global warming and rising energy
prices. Last year 11, 531 megawatts (MW) of wind
energy were installed, representing an annual increase
to the global market of 40.5%, up from 8,207 MW
the previous year. The total value of new generating
equipment installed worldwide was over $14 billion.
In 2005, Vestas was responsible for an accumulated
global market share of 35%.
Vestas has manufactured wind turbines since 1979
and has built a wind power empire that develops,
manufactures, markets and maintains wind power systems.
With more than 31,000 wind turbines installed around
the globe, and over 11,000 employees, Vestas is
the world‘s largest supplier. After the merger
with NEG Micon two years ago, its closest Danish
rival, Vestas is now guiding for a revenue of $4.7
billion in 2006.
The merger with NEG Micon brought with it an even
larger portfolio of blade technology, already proving
its worth as rotor and turbine sizes grow to shrink
energy costs. The cost effective technology produced
by Vestas has caused it to increase its number of
confirmed orders, most notably from China. "China
and the U.S. are the two largest consumers of energy.
China has recently purchased orders from Vestas
which demonstrates the Chinese market’s confidence
in Vestas technology" said Engel. These recent
purchases show that the Chinese government is serious
about renewable energy. The Chinese authorities
anticipate that a total of 500,000 MW of new generating
capacity will be installed in China before 2020,
and a significant part of this new capacity is expected
to come from the wind. The other key market for
wind energy is America. Experts believe that wind
power is the most promising alternative electricity
producer for the United States.
The United States is flirting with the idea of
wind, just last year the U.S. installed more new
wind turbines than any other country, about 2,400
megawatts of wind power, enough to provide electricity
for 650,000 American homes. However, the U.S. has
not decided to make a long term commitment to wind
power. U.S. Government support vacillates. "The
nation needs a timely and long-term extension of
the wind energy production tax credit to allow companies
to plan beyond 2007 and continue to build a strong
and secure energy future," said American Wind
Energy Association (AWEA) executive director Randall
Swisher.
The fickleness of the government’s devotion
to wind energy began in the mid-1970s in response
to energy security concerns. In 1978 the United
States passed the National Energy Act which sought
to decrease the Nation’s dependence on foreign
oil and increase domestic energy conservation and
efficiency. The Public Utility Regulatory Polices
Act (PURPA) of 1978 was created to improve energy
conservation and energy efficiency in the utilities
sector and had a major impact on the development
of renewable electricity. The 1978 Energy Tax Act,
included a 30-percent investment tax credit for
residential consumers for solar and wind energy
equipment and a 10-percent investment tax credit
for business consumers for the installation of solar,
wind, geothermal, and ocean thermal technologies.
The level of these tax credits changed over time,
however, and expired in 1985.
Uncle Sam again restored his interest in renewable
energy in 1992 with an Energy Policy Act that offered
a federal tax credit of 1.8 cents per kilowatt-hour
produced. This credit was taken away in mid-1999,
reinstated in December 1999 it expired again at
the end of 2001; revived again in early 2002 expiring
the end-2003; and reauthorized again in 2004, but
this reauthorization expires December 2007. The
government recent support has given the wind energy
producers tax breaks for some years, but the uncertainty
of the erratic support has meant that the building
of new capacity has progressed by fits and starts.
Potential generators of wind energy have been teased
by the Government’s give it and then take it
away policy of tax incentives. "To strengthen
our energy independence we need safe, domestic,
and inexhaustible energy, and wind power provides
just that," said Swisher. Not to mention that
the U.S. has some of the most ideal spots for wind
energy in the world. We have in our hand, as Mr.
Engel would say, a diamond. It just needs polishing.
|
DENMARK 
