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Released January 31, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Vestas Wind Systems A/S (Aarhus, Denmark) is the latest renewable-equipment developer to sound the alarm on significant challenges facing the renewable-energy sector in 2023. High material costs, driven in part by supply-chain problems, persistent inflation and slowing approvals for new wind-energy projects are bedeviling industry players, particularly in Europe, where the war in Ukraine is driving up demand for steel and other materials necessary for wind-energy equipment. Industrial Info is tracking $34.7 billion worth of wind-energy projects across the U.S. that are using, or considering using, Vestas wind turbines.
Click on the image at right for a graph detailing active wind-energy projects across the U.S. that use, or might use, Vestas turbines, by the project's parent company.
"The wind power industry's challenging period continued in 2022 due to unexpected geopolitical uncertainty, an accelerating energy crisis, and high inflation," the company said in a recent press release. "Activity levels in 2023 are expected to be lower than in 2022 followed by a step up in 2024 where installations in key markets are projected to increase." The company cited project delays, increased warranty provisions and an impairment on its V174-9.5 MW model as factors hampering its 2022 results.
Vestas executives acknowledged last week that the company's full-year 2022 revenues will come in below previous guidance. Revenues are expected to total 14.49 billion euros (US$15.7 billion), just a notch below the company's prior guidance of 14.5 billion to 15.5 billion euros.
Other wind-energy players to hit roadblocks over the past year include Ørsted (Gentofte, Denmark), which is developing offshore wind-energy projects in the U.S. northeast. Ørsted announced a $365 million impairment on an offshore project with Eversource Energy (NYSE:ES) (Boston, Massachusetts), citing "unprecedented cost inflation." Eversource is marketing the sale of its 50% stake in its joint venture. For more information on issues facing the wind-energy industry, see May 9, 2022, article - Eversource Could Exit U.S. Offshore Wind Partnership with Ørsted, and January 3, 2023, article - Will Sustainability Catch Up with Reality in the U.S. Power Market in 2023?.
Sunnier Outlook in the States
Vestas did receive some good news in the U.S., however. In addition to 276 megawatts (MW) worth of undisclosed, U.S.-based project orders in December, the company received a 216-MW order for wind turbines from AES Corporation (NYSE:AES) (Arlington County, Virginia) to power the second phase of the Chevelon Butte Wind Farm in Winslow, Arizona, which is preparing for the kickoff of its first phase in the near future. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more in a detailed project report.
Vestas also received an order from Apex Clean Energy Incorporated (Charlottesville, Virginia) to power all 300 MW of the Goose Creek Wind project in Monticello, Illinois. The project, which remains in its permitting phase, would comprise 50 V162-6.2 MW Vestas turbines. Delivery is expected to begin in the third quarter, with commissioning scheduled for the fourth quarter. Subscribers can learn more in a detailed project report.
Although its 2023 activity in the U.S. is expected to be a bit slow when compared with 2022, Vestas expects the Inflation Reduction Act will make for a busy 2024.
Among the largest projects under construction involving Vestas is TransAlta Corporation's (NYSE:TAC) (Calgary, Alberta) 300.9-MW White Rock East & West Windfarm in Anadarko, Oklahoma. The 201.4-MW White Rock East is expected to use 34 Vestas turbines, while the 99.45-MW White Rock West is expected to use 17 turbines. Subscribers can learn more from Industrial Info's project report.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for wind-energy projects across the U.S. that are using, or considering using, Vestas wind turbines.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing active wind-energy projects across the U.S. that use, or might use, Vestas turbines, by the project's parent company."The wind power industry's challenging period continued in 2022 due to unexpected geopolitical uncertainty, an accelerating energy crisis, and high inflation," the company said in a recent press release. "Activity levels in 2023 are expected to be lower than in 2022 followed by a step up in 2024 where installations in key markets are projected to increase." The company cited project delays, increased warranty provisions and an impairment on its V174-9.5 MW model as factors hampering its 2022 results.
Vestas executives acknowledged last week that the company's full-year 2022 revenues will come in below previous guidance. Revenues are expected to total 14.49 billion euros (US$15.7 billion), just a notch below the company's prior guidance of 14.5 billion to 15.5 billion euros.
Other wind-energy players to hit roadblocks over the past year include Ørsted (Gentofte, Denmark), which is developing offshore wind-energy projects in the U.S. northeast. Ørsted announced a $365 million impairment on an offshore project with Eversource Energy (NYSE:ES) (Boston, Massachusetts), citing "unprecedented cost inflation." Eversource is marketing the sale of its 50% stake in its joint venture. For more information on issues facing the wind-energy industry, see May 9, 2022, article - Eversource Could Exit U.S. Offshore Wind Partnership with Ørsted, and January 3, 2023, article - Will Sustainability Catch Up with Reality in the U.S. Power Market in 2023?.
Sunnier Outlook in the States
Vestas did receive some good news in the U.S., however. In addition to 276 megawatts (MW) worth of undisclosed, U.S.-based project orders in December, the company received a 216-MW order for wind turbines from AES Corporation (NYSE:AES) (Arlington County, Virginia) to power the second phase of the Chevelon Butte Wind Farm in Winslow, Arizona, which is preparing for the kickoff of its first phase in the near future. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more in a detailed project report.
Vestas also received an order from Apex Clean Energy Incorporated (Charlottesville, Virginia) to power all 300 MW of the Goose Creek Wind project in Monticello, Illinois. The project, which remains in its permitting phase, would comprise 50 V162-6.2 MW Vestas turbines. Delivery is expected to begin in the third quarter, with commissioning scheduled for the fourth quarter. Subscribers can learn more in a detailed project report.
Although its 2023 activity in the U.S. is expected to be a bit slow when compared with 2022, Vestas expects the Inflation Reduction Act will make for a busy 2024.
Among the largest projects under construction involving Vestas is TransAlta Corporation's (NYSE:TAC) (Calgary, Alberta) 300.9-MW White Rock East & West Windfarm in Anadarko, Oklahoma. The 201.4-MW White Rock East is expected to use 34 Vestas turbines, while the 99.45-MW White Rock West is expected to use 17 turbines. Subscribers can learn more from Industrial Info's project report.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for wind-energy projects across the U.S. that are using, or considering using, Vestas wind turbines.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
