COPENHAGEN - Denmark's Vestas Wind Systems said on Tuesday it had won its biggest order in the United States with a contract with Horizon Wind Energy, sending its shares higher.
Articles from Denmark
Shares in Vestas, the world's largest wind turbine manufacturer, plunged almost 14 per cent on Thursday as the Danish company downgraded its full-year forecast because of a severe shortage of key components, a sluggish output rate and budget overshoots in the US market.
There is an added irony here. The Danish consumer pays the highest tariffs for electricity in Europe. Much of these are hypothecated for the support of windmill owners. However, the wind power is sold on the spot market at rates that are much lower.
They introduced the world to "environmentally friendly" energy, but now some of Europe's "greenest" countries are under pressure to backtrack on wind farms as public anger grows over their impact on the countryside.
In conclusion, this study has shown that in many countries deregulation is having the expected effect of increased competition leading to price reduction. However, it is evident that pricing in markets depends not just on the status of deregulation, but also on the broader aspects of competition. Key factors here include the balance of supply and demand, generation fuel costs, the learning process that new markets go through, competition within different market segments and the costs of access to transmission and distribution networks. Deregulation is a long-term process that requires sustained attention.