A ten-year extension of US' Production Tax Credit subsidy ordinance could be settled within a matter a "days or weeks" and would, if the bill passes as expected, clear the path for the domestic green energy transition over the next ten years, says Vestas Chief Executive Henrik Andersen at the OEM' capital markets day on Wednesday.

"It could be days or weeks away, but if it falls into place it will clear the path for the next ten years of the US' energy transition. It will enable something we've never seen before," Andersen says and refers to the stop-and-go pace in the US market of many recent years.

Historically, PTC has been a strong driver behind the US wind market but has tapered off to lesser percentages during several periods – and at a few points has been allowed to expire completely.

That has resulted in big market fluctuations, and now the plan entails a ten-year extension at 100 percent relative to the rates in play before the scheme was whittled down to 60 percent coverage.

"There's an enormous difference in getting 60 or 100 percent PTC. So, be patient – it might only be a few months in the future," Andersen says.

Exciting years ahead

The wind turbine business is slated to play a key role in the energy transition that's gradually become widely accepted as necessary to reach global climate objectives, and that's why some exciting years lie on the horizon.

According to the CEO, everyone is now asking about how quickly the transformation will take place, but some big changes are needed.

"The world must go through some dramatic changes to get anywhere close to the 1.5 degree goal," says Andersen, referring to the Paris Agreement's target to limit global heating to less than 1.5 degrees Celsius relative to the pre-industrial average.

"We have only touched the beginning of this transition," he adds.

Maintains long-term guidance

Vestas restates its long-term financial guidance at the company's capital markets day.

The OEM will still banking on revenue outpacing market growth in the coming years, according to the group's presentation material.

Measured on earnings before interest and taxes, the company's profit ratio is projected to surpass 10 percent in 2025.

Moreover, free cash flows will be positive every year, and return on capital employed is slated to exceed 20 percent throughout the period.

Tight-lipped Vestas management witness to new revelations on stolen data last weekend 

Vestas: Big 2022 CapEx could add expense for customers

Extreme low-wind turbines on drawing board at DTU, Vestas and Goldwind