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March 8, 2022updated 23 Mar 2022 12:53pm

Ukraine crisis: Vestas plans to halt wind projects in Russia

The four renewable projects have been in development since September last year and have a combined capacity of 253MW.

Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict

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Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
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Denmark-based turbine manufacturer Vestas is reportedly planning to suspend works on four Russian wind projects in response to the country’s invasion of Ukraine.

Danish newspaper Ekstra-Bladet reported that the Novoalekseevskaya, Grazhdanskaya, Ivanovskaya and Pokrovskaya wind assets, which are all in the development phase, are currently under review.

In a statement, Vestas said: “Many of our employees and their families have been displaced and fear for their safety and for their future.

“We worry about the wellbeing of our colleagues, customers and business partners in the besieged country.

“In light of the ongoing and indefensible war initiated by the Russian Government, Vestas will stop any new commercial activity in Russia until further notice.”

Vestas was selected to develop the four projects, whose combined capacity amounts to 253MW, by a consortium that includes the Russian Gazprombank and Finnish energy company Fortum.

The company is understood to have been developing the projects since September last year.

Reuters said that Vestas did not immediately reply to a request for comment.

Earlier this month, Vestas said that it would suspend all its new commercial activities in Russia.

reNEWS reported that the company made the decision after experiencing difficulties in manufacturing, construction and transportation activities due to the conflict.

Vestas has also condemned the Russian Government for its military offensive in Ukraine.

Several other power companies have announced stern measures in response to the Russian military invasion of Ukraine.

These include Fortum, which has decided to suspend all new investments in Russia until further notice.

The Finnish company currently operates seven thermal power plants in the country through its Russian arm, according to Reuters.

In a separate development, Ukraine has informed the International Atomic Energy Agency (IAEA) that shelling from the Russian military has damaged a nuclear research facility in Kharkiv.

The nuclear research facility is used for producing radioisotopes for medical and industrial applications.

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Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

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