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Europe Failing on Renewables as Cost Fears Bite, Vestas CEO Says

 

Europe is failing on its renewable energy plan as the cost of development soars, according to the world’s biggest wind-turbine maker. (Bloomberg) — Europe is failing on its renewable energy plan as the cost of development soars, according to the world’s biggest wind-turbine maker. Clean energy developers should be “building like crazy” to meet European Union renewable-capacity targets, Vestas Wind Systems A/S Chief Executive Officer Henrik Andersen said in an interview. Power prices are so high right now that steep construction costs should not stymie projects, he said.

Vestas is among manufacturers to have raised prices as it struggles with higher commodities costs and supply-chain constraints that have rocked the industry over the past two years. But cost inflation doesn’t only threaten wind power. In green hydrogen, for example, Europe must speed up deployment or risk losing billions in investment to regions such as the US and Latin America.

 

Clean-burning hydrogen, which can be used instead of natural gas, is seen as crucial to the transition away from fossil fuels. The US has developed a system of tax credits for developers, which could catapult the nation ahead of Europe, where subsidies are less generous.

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Published on 1/31/2023 (50 days ago) Energy Crisis