Green Powers Denmark CEO Kristian Jensen welcomes “RWE CEO” Sven Utermöhlen to the stage for the organization’s annual meeting, which will be held on Thursday. He is the man behind the German energy company that is on its way to building Denmark’s largest offshore wind farm, Thor. There is one thing that Sven Utermöhlen has to correct for Kristian Jensen:
- I am the CEO of RWE Offshore Wind and not of the whole of RWE, says Utermöhlen, before jumping on to what is actually going well in the wind industry:
- We have an industry that knows what it is about, and that is good. But now the targets have increased so quickly that we cannot achieve the targets either for 2030 or the targets further into the future.
Therefore the targets cannot be achieved
There are several reasons why the CEO does not consider it possible to achieve the EU's wind targets.
- Firstly, our supply chain is not ready for it at all, and therefore it is almost impossible to achieve the 2030 targets, says Sven Utermöhlen.
Another reason is the economy, which is under pressure.
- We see in many markets that the business case does not hold up. This is due to inflation of 20 to 40 percent and the resulting higher prices together with higher interest rates, explains the German CEO.
There are two models for wind supply that he sees. And there is also a big difference in how different countries offer their offshore wind.
- There are two types of markets that we see. The first is that you are allowed to buy the right to operate the parks and operate them on commercial terms. Then there is the second, where you are allowed to make bids. Here, the one with the best business case is chosen, he says, expressing the most sympathy for the latter model.
Now RWE is on its way to building Denmark's largest wind farm, Thor, so the CEO also has a few words about the Danish market.
- Here in Denmark you have to pay to build, and it is on commercial terms. There is a lot of focus on 2030, and that will not last, because all other countries want the same, Sven Utermöhlen asserts.
However, the European governments are sticking to their various plans, even though they may not be achievable. But on the internal lines, reality is already dawning on them.
- Behind closed doors, we have talks at government level, and we can feel how they are becoming more realistic, says Sven Utermöhlen.
Chinese foundations
Particularly for Denmark's upcoming largest wind farm, Thor, the German wind manager must disappoint the European industry a bit.
- We buy the foundations for Thor in China, because there was no one in Europe who could deliver within our time window, says Utermöhlen about something that is here to stay:
- The offshore market is global, and therefore we must also be global in our purchases.
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