United States

United States

US market could decline 80%, says Vestas CEO

UNITED STATES: Turbine orders in the US could fall by as much as 80% if the PTC is not extended, according to Vestas chief executive Ditlev Engel.

Vestas CEO Ditlev Engel... US market could decline 80%
Vestas CEO Ditlev Engel... US market could decline 80%

Speaking to EU ministers, Engel said: "In the United States, the market this year is very, very busy. But because of the potential lapse of the regulatory framework in the US, this market will probably go down 80% next year."

Vestas, and Engel, have been forthright on the impact of the PTC's demise. The company, which employs around 3,500 people, said it was preparing to make 1,600 redundancies unless new regulation was approved.

Speaking to Windpower Monthly earlier this year about the possibility of redundancies in the US, Engel would not elaborate on whether any of the company's factories would go but was clear about the overall message.

"It’s not a threat, it’s the truth," he said speaking about the 1,600 figure. "It’s important people make an informed decision and, if they decide not to renew it, to know what the consequences will be."

At last week's AWEA Windpower conference, there was cautious optimism that the PTC would be extended. AWEA CEO Denise Bode said she was confident that Congress will pass a one-year extension, at least, of the PTC.

It's just a matter of waiting for the appropriate legislative vehicle, she said. "It is time to begin the planning and take the next bold steps," Bode said.

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