Now they tell us: Wind power giant says it was a mistake to say renewables would only get cheaper

by Jo Nova

For years they told us that the green transition would deliver cheap energy, and that if we just subsidized them enough, prices would keep falling. The promise of free energy on the horizon led whole nations (stupidly) to believe that closing coal plants was viable. But now that damage is done, suddenly the Vestas chief admits that telling people that wind can only get cheaper “was a mistake”.

Vestas CEO says industry went too far with cheap-energy pledge”

There is carnage in Europe. Orders and profits are collapsing. The largest wind turbine manufacturer in the world has already raised prices by more than 30% this year but despite that, expects its profit margins to shrink to “minus five percent”.

Lucky their orders are down since they are losing money on every turbine.

The fall in sales landed as inflation bites, supply lines are squeezed and their costs are rising. (After all, wind turbine factories can’t run off wind turbines, they’re paying for expensive electricity too). So suddenly Vestas need to raise their prices even more, and their CEO is hoping a belated apology will somehow bring their market back.

Bloomberg

Manufacturers such as Vestas Wind Systems A/S are seeing losses pile up as orders collapse at a time when they should be capitalizing on the turmoil in natural-gas markets. To blame — at least in part — is the industry’s insistence that clean electricity can only get cheaper, according to Henrik Andersen, chief executive officer of the Danish wind giant.

“It made some people make the wrong assumption that energy and electricity should become free,” Andersen said in an interview in London. “We created the perception to some extent. So we are to blame for it. That was a mistake.”

How pathetic the truth is — that it takes a war to pump up fossil fuel prices to the point where “wind is competitive”:

To be sure, wind power remains competitive with other energy after Russia’s invasion of Ukraine drove up prices for fossil fuels. But government auctions for new wind farms put pressure on companies to keep prices low, while costly and lengthy processes to gain planning permission continue to inhibit growth.

Shucks. The industry that lives off Big Government suffers some red tape. Cry me a river. The same corrupt bureaucracy that created the wind industry in the first place will mismanage them right off to China.

It’s a “transition” the solar industry has already suffered, and the wind industry has been fearing for months.

worth $170 billion,

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via JoNova

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November 8, 2022 at 01:39PM

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