WIND POWER – MADE IN DENMARK

In just 20 years Denmark has made wind power into Big Business. In 1983, electricity production from wind power was still a dream. Today nearly 60,000 MW is installed globally, and the figure is rising rapidly. Wind turbines from Danish manufacturers account for about half of the installed capacity.

The Danish wind turbine industry employs approximately 20,000 people. It comprises more than 200 companies making everything from turbine towers, nacelles and blades to generators, gear boxes and control systems. Sub-suppliers to the wind power industry export worldwide.

TURNING THE WIND INTO ENERGY

In the past 20 years, wind turbines have just grown and grown in size. From power ratings of just a few hundred kilowatts to several megawatts. And the growing size of turbines and wind power plants together with the increasingly stringent demands of energy utilities and grid operators, require more powerful and more complex control and IT systems. In the future, optimising wind turbine performance while reducing the weight and, if possible, the physical size of the turbines will be an important goal for Vestas.

“Tomorrow’s winner on the wind turbine market will design the most efficient and robust wind turbines with little downtime. The market in general, including the North American market, demands more reliable turbines”, says Jens Søby, President of Vestas Americas A/S, Vestas’ North American sales business unit.

At an overall level, the Vestas Group focuses on multi-megawatt wind turbines. Large wind turbines are the fastest growing segment, and in 2005 the Vestas Group had a global market share in this segment of more than 40%. Vestas has been a long-term player on the US market, starting in California in the early 1980s. Today, the company has a North American market share of around 30% (31 December 2005) and a workforce of 650 employees. 2005 was a challenging year for Vestas in North America after having signed up for a number of large projects at short notice. But the company succeeded in turning the tide and has managed the market growth well in the past year.

“We are seeing positive results from our focus on turbine reliability, our increased efforts in the service business and through increased focus on open and constructive dialogue with our customers,” says Jens Søby.

The days of the US market being very much a market purely driven by the short-term extensions of the Production Tax Credit (PTC) is past. The PTC has been extended to the end of 2008, but the market is now to a greater extent driven by state renewable portfolio standards, the competitiveness of wind energy due to increased prices of fossil fuels, broad political support, and the need for reducing dependence on imports of fossil fuels.

After a 27% market growth in total installed capacity in 2006, the US market is expected to continue growth at this level. The US market had the highest number of installed MW in 2006, and will in many ways continue to be a key market for Vestas.

“In 2006 we introduced the V90-3.0 MW turbine, the most powerful wind turbine on the market, and this turbine will be an important part of our future product portfolio. We see endless potential and have consequently decided to build a blade manufacturing plant in the US to support our development in this growing market,” Jens Søby continues.

Jens Søby states that the customer base has changed markedly over the last two years, reflecting the growth in the industry and the positioning of wind energy. With past customers predominantly being developers, a typical customer today would be an independent power producer or a utility, who can see the advantages of integrating wind energy as part of the energy portfo˜spective and as a means to comply with the requirements of renewable energy portfolio standards.

“You learn very fast that the US is not necessarily characterised by uniform regulations, codes and laws, and many things are purely regulated through the state. You need to apply for state specific business and construction licenses, driving permits and so on. When you include Canada, which is part of our market responsibility, the patchwork gets even more colourful. It is interesting to see that a wind turbine tower is either considered a building or part of a machine, depending on where you are in the market. We have realised that and put our procedures in place to cope with state regulated market requirements, Jens Søby adds.

http://www.vestas.com  

A BONUS FOR SIEMENS In 2004 Germany’s Siemens group acquired Danish wind turbine manufacturer Bonus Energi. Due to Denmark’s leading position in wind power technology, the group concentrated its entire wind power activities in Denmark. Prior to its acquisition Bonus Energi employed about 850 people. Today there is a workforce of almost 2,000 at the former Bonus headquarters in Brande. A major growth driver is the North American market where since the acquisition, Siemens has gained orders of over 1,400 MW, comprising more than 600 wind turbines for four locations in Texas. In addition to production facilities in Brande and Aalborg, Siemens has started its own blade production in Denmark and plans blade production in Fort Madison, Iowa, USA. http://www.siemens.com