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Vestas in red as competitive pressures increase in the Wind Industry

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The Global Wind Industry increased by 31% in 2009 despite a bad year for the world economy boosted by the movement towards cleaner energy and the relatively good economics of wind compared to other renewables like solar energy. Despite this Vestas which is the world’s largest turbine maker reported a loss making quarter . I think Vestas will continue to lose ground due to competitive pressures from Chinese wind makers like Sinovel and Goldwind which have captured most of the orders  in China the fastest growth market. Also Vestas is not strong in the USA which is the second largest market. With no compelling technology to beat the low cost Chinese players I think Vestas will continue to lose ground in the wind market.
Vestas Has Surprise Loss as Credit Crunch Cuts Orders – Businessweek

Vestas Wind Systems A/S, the world’s largest maker of wind turbines, reported an unexpected loss after tighter financing led customers to delay renewable- energy projects. The shares fell 4.6 percent. Vestas lost a net 82 million euros ($108 million) in the first quarter compared with profit of 56 million euros a year earlier

The order book was worth 2.9 billion euros at the end of the quarter compared with 4.9 billion euros at the same time a year earlier. Vestas installed 178 turbines with a combined capacity of 387 megawatts in the quarter compared with 490 turbines producing 885 megawatts in the same period of 2009.

Vestas will also increase 2010 investments by 400 million euros to 1 billion euros to help it speed up the introduction of its new V112-3.0 megawatt model, which works both on sea and land.

FPL Group Inc., the largest U.S. power company, said yesterday that it would build 600 megawatts to 850 megawatts of wind-energy plants this year, reducing its target from 1,000 megawatts previously. FPL cited low power prices and uncertainty regarding climate-change legislation.

Global installations of wind turbines this year will gain about 9 percent, adding 41 gigawatts to power capacity, Bloomberg New Energy Finance has estimated. That’s the equivalent of an investment of $65 billion and enough to power more than 12 million homes, according to data from the U.S. Department of Energy and the American Wind Energy Association.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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