Vattenfall to Compete with Dong Energy’s Offshore Wind Prices

Vattenfall to enter race with Dong Energy for best and cheapest offshore wind turbines, writes Danish business daily Borsen. New Vattenfall head, Magnus Hall, will lower prices to match Dong Energy’s ambition to make offshore wind at least 40 per cent cheaper. Moreover, Hall is out to make Vattenfall greener. Dong Energy welcomes the offensive. 

After a slow period in the wake of the financial crisis, Vattenfall brings in Magnus Hall as new CEO. “We shall be the leading operator when it comes to the changeover towards renewable energy. Thus, wind energy is a natural part of our expansion options,” says Magnus Hall to Borsen.

The message from the new CEO has received both positive and skeptical response from analysts and experts. K2 Management’s CEO, Henrik Stamer and FTI Consulting’s chief of wind power, Feng Zhao applauds Vattenfall’s offensive statement. HIS Energy’s chief analyst, Magnus Dale, is more skeptical: “The message from Vattenfall is very offensive. Our expectation is that within the next decade it would be possible to lower the price with 20 percent for a basic wind farm.” 

Magnus Hall underlines to the paper that Vattenfall is working to change its allocation of energy production and within six months will present a plan for the future: “Our ambition is to invest as much as possible in renewable energy.” 

Even though the finances still are under pressure, Magnus Hall sticks to the green visions which shall be financed by financially strong partners. In this regard, Denmark will be an important factor.

“We have our surveillance centre for wind power in Esbjerg, and we have a great deal of our competences in building in Denmark. Both onshore and especially offshore,” says Magnus Hall and continues: “Denmark also has great supplier competences in both Vestas and Siemens.” 

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