The renewable energy market is highly favorable and in the coming years will be supported by significant growth in electricity demand, says Vestas CEO Anders Runevad at a capital markets day event held in Copenhagen for investors, market analysts and the press.

"New onshore wind turbine installations are estimated to increase from 50 GW in 2018 to 61 GW in 2021," says Rundevad, referencing figures from consultancy firm Make Consulting.

The offshore wind market is projected to grow from 4 GW in 2018 to 7 GW in 2021.

Runevad is pleased with Vestas' leading market position.

"We have been consistent in winning market shares, if one looks back five years, and we benefit from our global reach," Runevad says.

In 2017, Vestas held a global market share of 16.4 percent, and excluding the Chinese market, held a market share of 24.5 percent.

Runevad also point to several drivers for market growth – primarily that of electricity demand.

"We see a very favorable market. Forecasts point to a very solid growth in global electricity demand, and a large portion of this increased demand will be covered by renewable energy," Runevad tells.

He references estimates showing that electricity demand will be up by 40 percent ahead of 2035.

This will not least of all be driven by electrification and population growth.

Digitalization is another key driver. Large data centers require huge volumes of electricity, which also creates added demand," Runevad says.

On the other hand, he points out that structural energy efficiency gains from, for instance, improved insulation and less consumption will pull in the opposite direction.

"The other part of the market is the decommissioning market, in which coal-fired and nuclear power will lead to significant increase in demand for new energy;" says Runevad.

The market is also supported by powerful political framework policies for renewable energy, including fixed targets for the portfolio of renewables in various energy mixes.

"There are also intensified competitive forces surrounding renewable energy," Runevad tells in regard to to power prices for wind energy having declined considerably in recent years.

English Edit: Daniel Frank Christensen

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