http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/RSS.ashxVestas Win[d] PagesMon, 20 Aug 2007 17:03:31 +0200http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=1http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=1Rethinking the grid Ambitious goals for productivity The art of welding a perfect tower Small improvements, big results New factories a new Vestas A good brand of employer Kick start in Turkey Hot debate on global warming Vestas No. 09 Year 04 21 August 2007Wind WIND, OIL AND GAS2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=2http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=2About being Vestas busy Today, wind power is a competitive form of energy that assures local electricity generation, makes it possible to establish production capacity quickly, and makes use of a clean, inexhaust ible source of energy. We at Vestas call this modern energy and, as the market leader, have chosen to head the eld in the work to ensure the development of the industry. For this reason, we will in future present our company with a message that re ects both our current status and our ambitions for the future Vestas No. 1 in Modern Energy. This rst place carries obligations, particularly when it has to be defended within a growth industry distinguished by the keenest public attention. This means that we at Vestas have to act on numerous fronts. We are not simply busy, we are Vestas busy. We are streamlining and improving our internal processes and reinforcing working relation ships with customers and suppliers, while at the same time keeping pace with the explosive development of the industry. This issue of Vestas Wind contains articles about a number of the initiatives we have launched for example our work to ensure the ef cient transfer of technol ogy, and our projects centred on reinforcing the operational reliability of our turbines. Today, wind power accounts for less than one per cent of global electricity consumption, but its potential is much greater. The ongoing development demands appreciable investment both by Vestas and by our suppliers. Vestas own expansion projects involving new production facilities will result in the compa nys capacity increasing by more than 1, 300 turbines in the second half of 2008, as compared to levels at the start of 2006. In addition, we are improving the ef ciency of production at our existing factories, where new work processes described in this issue of the magazine have signi cantly increased capacity. On account of all this input, Vestas succeeded in living up to its own expectations for the rst six months of 2007. That said, the most important resources for Vestas continued development are and remain the expertise, power to act and determination of our employees. Competence development and recruitment are therefore key issues for Vestas, and in 2007 we are taking on an average of ve new employees a day. This growth, too, presents a considerable challenge, but it is a precondi tion for Vestas ability to ful l its leading role in the new energy picture, where modern energy is to help raise the standard of life for more and more people in more and more countries. Very best regards Ditlev Engel, President and CEO2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=3http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=3Contents 3 4 Focus on productivity When snowballs roll Vestas work to optimise production has recently been recognised with a productivity award but the companys ambitions stretch much further. 10 People in the pipeline Employer branding is the key to meeting Vestas growing needs for highly quali ed staff. 14 Global warming Final warning or mass hysteria It is almost impossible to open a newspaper without being reminded that we are heading for a climate disaster. Or are we Vestas Wind takes the tempera ture of the global warming debate. 22 Towering expectations for quality Around 85 per cent of Vestas tower components are manufactured by external suppliers all over the world. This makes big demands on quality control and the transfer of technology and skills. 28 A net consensus Europes power transmission systems need investment and market reforms and not just to handle the special requirements of renew able energy. 34 Time is money Thanks to Constitution Project No. 8, Vestas is well on its way to reducing the crucial MTBI Mean Time Between Inspections. Progress has come from improvements large and small, includ ing a little gadget dreamed up by an inventive Portuguese service technician. 38 Capacity expansion Investment in the future More than EUR 300 million invested in facilities in 2007 alone shows how fast Vestas is growing. And there is more to these factories than increased capacity. 42 Focus on future energy consumers Vestas has joined forces with the toy manufacturer LEGO Group to teach young people to think in terms of wind energy. 46 Turkey goes with the wind Vestas has already won ve contracts since a new law liberated one of Europes most powerful wind zones. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=4http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=4There is always room for improvement. This fundamental attitude combined with production systems borrowed from the automotive industry, for example has helped employees at Vestas factories all over the world make a lot of progress in the areas of productivity, product quality and safety. And this spring, this attitude was rewarded with the Danish Confederation of Industries Productivity Award. But there is still room for major improvements, and the goals for the future are ambitious. When the snowballs roll 4 Focus on productivity 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=5http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=55 We still have a long way to go as regards productivity. That is the clear message from Johnny Høy Henriksen, Senior Vice President of Vestas Assembly, the part of Vestas Nacelles that has responsibility for facilities such as Vestas nacelle assembly factories. However, the course has been set, and tangible recognition of the work already done in this area was forthcoming in the form of the Danish Confederation of Industries Productiv ity Award that was presented to Vestas Nacelles in May 2007 for the companys initiatives in this area, which included work to implement the Lean production system. The statement from the jury regarding the background for the decision featured the following words The company is a role model, because it has succeeded in boosting productivity while at the same time maintaining high levels of employee satisfaction, keeping absence due to illness low, and operating with remarkable exibility. However, this does not mean that Vestas Nacelles will be toning down its input. The organisation must be imbued with an attitude which encourages everyone to look for improvements every single day. An attitude that is not reliant on the management decree ing when speci c projects are to be launched to improve speci c areas, but one that involves such work being done as a natural part of the corporate culture. We are not there yet there is still work to be done before snowballs start roll ing everywhere, says Johnny Høy Henriksen. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=6http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=6The nacelle assembly factories in Ringkø bing and Viborg, Denmark, are two of those that have made most progress in the work with Lean. Rolf Alexandersen is the factory manager in Viborg and was, until recently, head of production at the Ringkøbing plant. Our approach has consistently been based on training and education. All the managers, middle managers and hourlypaid workers at the Ringkøbing factory have completed Lean training courses, as we considered it crucial to ensure that everyone had the same basis for working systematically with improvements, he explains. Remarkable progress The results of two years of work with Lean speak for themselves, even though other fac tors such as improvements in the supplier situation have also had an effect. Assembly time per nacelle has been reduced by more than 20 per cent within the past year alone. At the same time, employee satisfaction is markedly improved, and last but certainly not least, safety has been given a lift. During the rst six months of 2007, the number of industrial injuries that resulted in more than one days sick leave was halved in relation to the same period in 2006. According to Rolf Alexandersen, all the improvements can be traced back to the same source Lean. Moreover, all improvements have stemmed from the employees requests with regard to the setup of their work and working environ ment. Employees are empowered, and the improvements are the results of their ideas, he explains. As an example, Rolf Alexandersen mentions a suggestion from the employees about reversing the line in the department for hub assembly so that the hubs travelled in the 6 It has to do with realising that there is always room for improvement and we are well on our way. Rolf Alexandersen, Factory Manager, Viborg, Denmark. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=7http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=77 Søren Husted, President, Vestas Nacelles, receives the Danish Confederation of Industries Productivity Award in May 2007 for Vestas Nacelles initiatives in increasing productivity. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=8http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=8opposite direction through the production hall. It was a major reorganisation that cost around DKK one million to implement. But it has facili tated access to the components and improved the ow. In this way, investments of this kind soon pay for themselves, stresses Rolf Alexan dersen, who goes on to relate that the turnover speed in the warehouse has increased appre ciably, too, minimising the risk of components becoming outdated and freeing up resources for other parts of Vestas operation. Vestas Nacelles employs more than 2, 900 people in Europe, China and India. One of the tools used to transfer successful experience between the factories has been given the title of supersites. We look at how each and every factory is doing with regard to the stated goals for safety or quality, for example. We then invite the appropriate employees from an area of responsibility typically from the factory that is doing best to a meeting. At this meeting, we analyse the method that has produced the good results, says Johnny Høy Henriksen. In this way, our employees are constantly learning from their colleagues who are a step ahead, and who have the same interest in and familiarity with the profession as they do themselves. At the same time, this approach gives employees the chance to challenge each others solutions. It has a much better effect than if a manager simply stood up and told them how things are to be done, explains Johnny Høy Henriksen, who always takes the broad view when it comes to the work to optimise processes at the assembly factories. There are a number of preconditions that must be met in relation to deliveries from suppliers, for example. But if these are met, then I do not think it would be unrealistic in the long term to double production within the current framework. Experience must be shared At Vestas Blades, too, the focus is very much on increasing productivity. Here, the spotlight is on the TPM Total Productive Maintenance production system, but the fundamental phil osophy is the same We have a lot of skilled and experienced colleagues, and we make the best use of their competences by delegating responsibility and decisions to them. After all, they are the people who work with the processes every day and are familiar with every aspect of them. With TPM, for example, we can ensure that improvement suggestions from all parts of the organisation are examined thoroughly and seriously, explains Bjarne Sandager Nielsen, Senior Vice President of Production Engineer ing at Vestas Blades. The Vestas blade factories in Nakskov and Lem, Denmark, have both been working with TPM since 2003 and therefore have more ex perience with the system than many other Vestas locations and their experience is positive. It is dif cult to see the results of TPM in isolation, but at the Nakskov plant, production increased by more than 50 per cent between 2002 i. e. before we started working with TPM and 2005, with moreorless the same number of employees. This translates into a cost saving of approximately DKK 100 million a year. At the same time, the increase in production obviated the need to invest in an additional three production lines, says Bjarne Sandager Nielsen. Over and above the tangible bene ts, the introduction of the new system at Nakskov resulted in absence due to illness falling by a third, and the number of industrial injuries being halved. We see the majority of these improvements as a direct result of our work with TPM, which involves all employees in the ongoing improve ments, he continues. If you take a look at the results this initiative has already generated, it is clear that there is a great deal to gain, says Bjarne Sandager Nielsen. Instructors spread best practice One of the latest initiatives at Vestas Blades is the formation of a corps of instructors involv ing experienced, hourlypaid workers from Vestas blade factories. These employees com plete a course that gives them the opportunity to familiarise themselves wit2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=9http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=9to support a change process or to assist with training the workforce for a new factory, for example. Experienced employees, both managers and hourlypaid workers, constitute a very important resource in our work to ensure that the best and most appropriate work methods are used everywhere, says Bjarne Sandager Nielsen. Finally, Vestas Blades is working with Value Stream Mapping, which, as the name suggests, involves mapping the ow at individual fac tories approximately once a year. On the basis of the Value Stream Mapping data, Vestas Blades can de ne a range of improvement projects that are subsequently carried out on a panorganisational basis. Longterm focus is crucial to Vestas work on productivity, irrespective of whether the tool chosen is called TPM or Lean. As Rolf Alexan dersen puts it You can compare the process to giving a man a piece of paper an asking him to af x it to a wall as high up as he can. To start with, he jumps. Then he realises that he can reach higher by standing on a chair. After that, he uses a ladder, and then a lift and so the pro cess continues. It has to do with realising that there is always room for improvement and we are well on our way. 9 FACTS ABOUT LEAN AND TPM The Lean and TPM production systems both stem from the Japanese automotive indus try, and are both intended to generate ongoing improvements in production processes. Both require a high level of employee involvement, and employee responsibility also plays an important role in the improvement process. With Lean, minimising waste is a key concept, and this is achieved by focusing on improving product quality and ow, and by reducing costs and the consumption of resources, including time. TPM Total Productive Maintenance aims, through continuous improvements, to ensure the best possible utilisation of machines and materials, and to generate error free production by involving employees and using the most appropriate methods. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=10http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=10People in the 10 pipe Vestas gained 1, 700 more employees in 2006, bringing the total up to just over 12, 000. The ambition in 2007 is to grow the organisation by a further 2, 000 employees and strengthen the basis for future expansion. Global employer branding is the key. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=11http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=1111 line Many large international companies are nding todays strong competition for employees a formidable challenge. For a company like Vestas, with plans to expand its workforce by some 2, 000 highly competent members of staff in 2007, the challenge is breathtaking. To over come the hurdles, Vestas People Culture has launched global initiatives to build an effective people pipeline that will channel the right people into the right jobs at the right time. A massive employer branding drive is a major part of the effort. Ensuring the company is well known and that it has an attractive pro le are fundamental to success on the employer market. Once new employees are won, the next important task is to make sure the work ing experience lives up to expectations so they remain satis ed with their choice of employer. The extreme importance of communicating the right positive message to job candidates should not be underestimated, says Roald Ja kobsen, President of Vestas People Culture. We compete with the electronics industry for control system engineers, the metal indus try for the metal workers who build our towers, the project engineering industry for the en gineers who design our nacelles I could go on. In India, the four biggest IT companies will take on 100, 000 IT experts this year alone. So we need an attractive brand and there has to be a close relationship between how we pro le ourselves and what people actually experience when they come here, he adds. Branding surveys To nd out what potential employees seek from an employer and how Vestas and the wind industry are perceived, Vestas People Culture has conducted two employer branding surveys in countries identi ed as focus recruit ment areas. The rst in 2006 covered Denmark, China, Germany, India, Spain and the US, and the second in early 2007 the same six countries with the addition of Italy and Singapore. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=12http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=12The 2007 survey included some 10, 600 respondents, among them Vestas employees, external respondents categorised as business or engineering students, young professionals and senior professionals, and skilled workers. Birgitte Brix Andersen, who as Employer Brand Manager is responsible for coordinating Vestas global employer pro le, reports on the important ndings of the two surveys. A major nding was that the powerenergy industry is only attractive to four to ve per cent of respondents. But, as soon as they nd out we work with wind, they become inter ested. The task is, rst, to brand wind energy and, then, Vestas as an attractive employer, she says. Another thing we identi ed was that, for many, corporate responsibility and employ ment within a company that re ects their own values are important. Opportunities for an international career and increasingly challeng ing tasks are two more parameters that interest potential and current employees. So it is essen tial that we communicate that. The survey results have provided the basis for a number of initiatives to bring Vestas closer to its recruitment goals. Birgitte Brix Andersen points to the growing collaboration with schools, universities and a top talent network for students and young professionals. Career presentations and invitations to visit Vestas of ces are aimed at raising awareness of the company. Yet another initiative focuses on the establishment of a global network of experienced talents. Favoured workplace A big part of Birgitte Brix Andersens work involves travelling the globe to nd out which channels and messages are best to build Vestas pro le as a desirable employer in each country. Once these have been identi ed, a lo cal employer branding communication strategy can be de ned. While there is still a long way to go before Vestas becomes a household name in most parts of the world, in Denmark where the company head of ce is based, the efforts of the past year have produced clear results. On the list of the 150 most favoured Danish work places, Vestas is now ranked no. 7 by business students and no. 10 by engineering students compared to no. 18 and no. 17, respectively, in 2006. This improved status is also re ected in the number of applicants for the Vestas Gradu ate Programme, which takes on its second 12 The whole world is Vestas recruitment pool, says Roald Jakobsen, President, Vestas People Culture. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=13http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=13generation of graduate trainees in September. Compared to last years 800 applicants for the initial 18 positions, this year almost 2500 graduates from 34 countries have applied for the 44 new places on the programme. Eventu ally, 50 graduate trainees will be taken on each year an important part of the people pipeline that will enable Vestas to satisfy its skilled manpower needs in the future. Employee forecasts Looking ahead is crucial. In addition to the graduate programme, Vestas People Culture President Roald Jakobsen highlights detailed employee forecasts as one of the key ways in which Vestas can ensure a smooth ow of new employees to the growing number of positions within each business unit. Covering six months at a time, the forecasts specify exactly which types of expertise will be required to meet coming requirements. This enables us to start the search process a little earlier. So, if a good candidate turns up before they are actually required, we can take them on in the knowledge that we will need them soon. It means we can respond more quickly to business unit needs and avoid bottlenecks, Roald Jakobsen explains. People retention Individual integration plans see to it that new employees get the best possible start in their job. Then annual employee satisfaction surveys and performance development dialogues pick up on what must be done to improve working conditions. During these dialogues, employees existing competences are reviewed and a plan established to secure their continuous personal development in line with their own and the companys expect ations. The Vestas High Potential Programme, Executive Talent Programme and Leadership Development Programme are in place to assist employees in attaining individual development goals. Among the employee retention initiatives is a performance management system, including a bonus scheme based on the companys over all result and the result of each business unit. Already introduced for Vestas Vice Presidents, the system will be extended to all employees no later than January 2009. Further plans are afoot to secure the lowest possible employee turnover. The task of meeting the recruitment chal lenge is great. But the current recruitment initiatives and those still under development represent only the tip of the iceberg. There are many avenues to explore. As Roald Jakobsen puts it, the whole world is Vestas recruit ment pool. And there is no sign of it emptying anytime yet. 132007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=14http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=14In recent issues of Vestas Wind, we have published articles which have mentioned or actually been based on the current and often heated debate about global warming. But how bad in fact is the situation of our planet Are we just a few steps away from the apocalypse Or is it a matter of global mass media hysteria Will the politicians in charge ever agree on ef cient solutions Or are we on the verge of spending billions of dollars on initiatives that have only limited effect Vestas Wind has pardon the pun taken the temperature of the debate. Global warming 14 Final warning or mass hysteria2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=15http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=15Sunday, 25 February 2007 was, in many ways, a redletter day in the process that has turned the battle against global warming into a peoples cause. That was the day on which former American Vice President Al Gore and director Davis Guggenheim were presented with an Oscar at the Kodak Theatre in Holly wood for their documentary An Inconvenient Truth. The lm and the book of the same title are important elements in Al Gores ongoing campaign to open the eyes of people all over the world to the increasing climate changes, and as he stood on the stage with the famous statuette in his hands, noone could doubt that the climate battle had reached its highest point so far. But what is actually at the heart of the prob lem that politicians, researchers, statisticians, 15 grassroots movements, media and ordinary people are devoting so many resources to discussing Fundamentally, the issue can be summarised in four questions 1. Is global warming taking place And if so 2. Is CO2 from human activities the primary cause 3. How bad can the problems caused by global warming be 4. What can and should we do about it As regards the rst of these questions, there is now general consensus among the leading cli mate experts in the world that global warming is, indeed, taking place. Certainly, there are still a few doubters who claim that the rises in tem perature and the almost endless stream of heat 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=16http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=16records we have witnessed over the past 1015 years are simply part of the climate uctuations that have always affected our planet. But the latest report from the largest and in the opinion of most people most credible player in the area, the UN Climate Panel IPCC, indicates that it is reasonable to suggest that the Earth is in fact getting hotter. How much and how fast, however, are questions that researchers are still striving to answer. The human race accused It is particularly when it comes to the issue of the cause of the global rises in tempera ture that opinions seriously start to divide. Subsidiary report 1 from the UN Climate Panel concludes that the warming with 90 per cent certainty stems from human activities. This is a gure which, when the report was published last February, triggered banner headlines in the media and fuelled the point of view that we, the people of the world, are responsible for the problem and therefore the only ones who can do something about it. Nevertheless, even though more than 1, 250 researchers, environmentalists, busi ness people and so on from all parts of the world contributed to the report, there are still other experts who are shaking their heads and continuing to claim that the level of greenhouse gases in the atmosphere has no effect whatsoever on the temperature of the Earth in the long term. A number of research ers, for example those who contributed to the controversial documentary entitled The Great Global Warming Swindle, which was produced by the British TV station Channel4, stress that, to the contrary, the relationship between temperature and CO2 levels in the atmosphere are interrelated, but that it is the level of CO2 that is de ned by the uctuations of temperature with a delay of 800 years, ap parently rather than the reverse. At the same time, this fraction of science is keen to put forward, as one of several arguments, that the global temperatures actually fell in the period 19401975, while the level of CO2 emissions rose appreciably as a result of the industrialisa tion of the western world in particular. Both developments are presented on the website of the American Carbon Dioxide Information Analysis Center httpcdiac. ornl. gov. These major scienti c differences of opinion obscure the fact that we are looking at incred ibly complicated relationships that researchers still do not fully understand. Even with the computer power and advanced climate models available today, high levels of uncertainty are still involved when it comes to highlighting relationships, causes and consequences. Are we facing a climatic disaster If the debate about the cause of the rising temperatures has been hotter than our planet is ever likely to get, this is nothing compared to the rhetoric used in the area of discus 162007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=17http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=17sion centred on the possible consequences and solutions. Two reports in particular have splashed terms such as climate catastrophe and climate refugees across the front pages of many newspapers. The rst is the muchdis cussed Stern Report, which was commissioned by the British government to chart the human and nancial consequences of global warming. One of the primary conclusions of this report is that the cost of acting now is much lower than the nancial consequences of not doing any thing. Sir Nicholas Stern, who is advisor to the British government in the economics of climate change, thus estimates that the cost of keep ing the global rise in temperature below two degrees would be one per cent of the global gross national product forecast for 2050. The other report that has played a key role in both the political and the popular debate about the likelihood of a climate disaster is the second part of the report from the UN Climate Panel. This subsidiary report was presented at a press conference in Brussels in April and largely agrees with the Stern Report with regard to the gloomy outlook facing the human race. At the press conference, Rajendra Pachauri, the Chairman of the Climate Panel stated It is the poorest of the poor people in the world who will be hardest hit, and who are most vulnerable to climate changes. Poor people are less equipped to adapt to climate changes and so in my opinion, this issue is, to a certain extent, a global responsibility. The all else equal factor One of the critical voices that has attracted most attention in the climate and environ mental debate of recent years belongs to Bjørn Lomborg, the Danish statistician. He put himself rmly in the spotlight in 2001 with the publication of his book entitled The Sceptical Environmentalist, in which he argues that the Earth is appreciably healthier than the environmental debate would generally have us believe. Later, in April 2004, he was named one of the 100 most in uential people in the world by Time Magazine, and last March, almost to emphasise his importance in the climate debate, he was invited to address the American Senate immediately after the delivery of a similar speech albeit one with a very different message by Al Gore. Bjørn Lomborg agrees that we are cur rently witnessing global warming. He does not deny that, to a certain extent, this is caused by human activities, either. However, he is appreciably more optimistic than both Sir Nicholas Stern and the UN Climate Panel in his expectations regarding the possible consequences. The problem is that there is too great a tendency to base forecasts on scenarios in which all other conditions remain unchanged, says Bjørn Lomborg and goes on to give an example When working group 2 from the Climate Panel tells us that there are 17 Last February, Al Gore and Davis Guggenheim were presented with an Oscar for their documentary An Inconvenient Truth. POLFOTO2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=18http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=18currently around 10 million people who experi ence oods every year, and then adds that if water levels continue to rise as forecast in the rst subsidiary report, this gure will hit 100 million in 2100, they are right technically. But you have to remember to read the footnote to the graph that presents these gures, because the footnote states if nothing else happens in the same period. So, to put it over simply if everyone just sits around by the water and waits a century for the water to rise well yes, they will all start to drown. But this is not particularly realistic. If you instead realistic ally assume that increasingly rich populations will spend the same proportion of their gross domestic product GDP on protecting them selves against oods, then the models indicate that instead of the number of people affected by oods rising from 10 million to 100 million in 2100, it will actually fall from 10 million to one million. Bjørn Lomborg also has some critical com ments to make on the Stern Report Stern speaks, for example, of the risk of losing 20 per cent of global GDP if we do not do anything, while it will only cost one per cent to do something. The problem is that he has never performed a costbene t analysis to support this claim. Moreover, the interval he puts forward for the price of the potential damage is much more pessimistic than the research results available provide grounds for. UN at the head of the table The fact that Sir Nicholas Stern does not share Bjørn Lomborgs con dence in peoples ability to adapt to the consequences of global warm ing was highlighted when, at the beginning of the year, he held a speech for a large audience in Washington D. C. He actually started his speech by asking anyone who agreed with just one of three statements to leave the room. The statements were 1. that the available scienti c knowledge about climate conditions is awed 2. that people are remarkably good at adapting by wearing lighter clothes or learning to swim and 3. that the potential effects are so far off in the future that we need not worry about them. Irrespective of whether or not you choose to believe the gloomy forecasts from Sir Nicholas Stern and the UN Climate Panel, it cannot be denied that a host of politicians all over the world have picked up the increasingly piercing cry of distress from researchers. For example, climate problems were allocated a leading position on the agenda of the G8 summit in Germany in June, where, after tough negoti ations, the delegates released a statement that may provide a good illustration of the chal lenge involved in creating consensus among the countries of the world regarding how best to tackle the climate issue. The statement says, for example, that the G8 countries will consi der halving their CO2 emissions up to 2050. Another and, in the opinions of some people, more important result of the summit was that the President of the United States, George W. Bush, recognised the UN as a negotiation forum for future international agreements regarding climate issues. With regard to that result, Angela Merkel, Chancellor of Ger many and current President of G8, said at the subsequent press meeting I consider it most important that everything is done within the framework of the UN process. Not at some point or other, but with commencement of negotiations at the climate conference on Bali in December, and with a terminal date in 2009. This will really give us the chance to get a post Kyoto agreement in place. I see this as a very, very important step in the right direction. Connie Hedegaard, the Danish Minister for the Environment, was also positively disposed towards George Bushs recognition of the UN as the leader of negotiations. The role of the UN is of particular importance to Connie Hede gaard, because in 2009, Denmark is to host the decisive climate summit, at which the countries of the world are to attempt to reach agreement on a deal to replace the muchdebated Kyoto Protocol. This 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=19http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=19As much as possible for the money The Kyoto Protocol itself and the likelihood of a new agreement involving political goals for the reduction of CO2 emissions have met harsh criticism from several sources. On this issue, too, Bjørn Lomborg has appeared as a distinctive debater. Throughout the debate, I have consistently claimed that the Kyoto Protocol costs USD 180 billion every year, and that at the end of the day it will simply delay global warming by ve years at the end of this century, he says, and goes on to add I actu ally regret having been too kind in my com ments about Kyoto, because I have said that if all countries lived up to their obligations in full and continue to do so for the remainder of this century i. e. maintaining CO2 emissions at a level 5. 2 per cent below 1990 levels, this would postpone global warming by ve years. In reality, however, this assumption is not particularly realistic. Had I, on the other hand, chosen an assumption that all the countries would live up to their obligations during the ve years that the Kyoto protocol covers, and then do nothing afterward, we would instead have spent USD 180 billion a year to postpone global warming by seven days In Bjørn Lomborgs opinion, rather than throwing billions at agreements of which the implementation in practice is little short of a Utopian dream, it would be better for the pol iticians to base their decisions to a greater ex tent on economic costbene t analyses. Quite simply, we do not have the money to solve all the problems in the world, so we have to look at where we can do the most good for the least money, says Bjørn Lomborg, who, together with a group of economists including four Nobel Laureates, has prepared a prioritised list of the most appropriate use of global nancial resources. At the top of the list are problems such as malaria, AIDS, malnutrition and access to clean drinking water. Global warming does 19 Bjørn Lomborg, Danish statistician. Connie Hedegaard, the Danish Minister for the Environment. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=20http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=20not appear until way down the list. I think it is rather surreal when some people claim that climate changes will, for example, make people more vulnerable to malaria. Try telling that to someone suffering from malaria. Mal aria makes people much more vulnerable to climate changes, for example. I think it is more logical to look at the issue like this if we tackle malaria, many more people will be in a much better condition to handle climate changes. So when you say that doing something about the climate will cut the number of people affected by malaria by 3. 2 per cent, I say that I would much rather do something for all those who are already suffering from it today and, in addition, do it much more cheaply, says Bjørn Lomborg. Heavyweights from the business world in play The business community is also increas ingly focusing on climate changes. More and more companies are, so to speak, pledging allegiance to the ag, and admitting that they are part of the problem and are therefore obliged to make an active contribution to the solution. Most recently, the British entrepre neur Sir Richard Branson has stated that he will invest DKK 17 billion over the next 10 years on the development of environmentally friendly fuel with the aim, inter alia, of reducing CO2 emissions from the eet of aircraft that he operates through his airline Virgin Atlantic. Richard Branson sat side by side with the Danish Minister for the Environment and inter nationally recognised science experts at a press conference in Copenhagen on 31 May to present a new forum entitled the Copenhagen Climate Council. The intention behind the council is to prepare concrete proposals in the runup to the summit in Copenhagen. Kyoto was a asco. Co penhagen, on the other hand, must be remem bered as a great success, said Richard Branson at the press conference. He added The world cannot afford to let Copenhagen fail. A debate on emotions The climate debate involves both complex scienti c problems and issues of a more ethical nature. So for the man in the street it can be more than a little dif cult to keep seeing the big picture and to establish what to believe and think. Moreover, the views of all the parties in volved in the debate are largely communicated by media for which the numbers of readers and viewers are actually proportional to the level of drama and sensation in the content. Therefore, to a large extent, the climate debate has ended up as a complicated cocktail of facts and feelings. A cocktail which, according to Bjørn Lomborg, is not exactly the ideal basis for making the right decisions. It is most unlikely that we will make the right decisions on the basis of this type of highly emotionallycharged presentation of the arguments, of which Al Gore is a lead ing exponent. I am worried about this almost apocalyptic mindset which will lead us to focus almost exclusively on global warming and to throw vast amounts of money at it without do ing very much good. This is not a good legacy to leave to our children and grandchildren, he concludes. A part of the answer is in the wind No matter where you may otherwise stand on the current climate debate, the following fact should give pause for thought to everyone who believes we should work to reduce the humangenerated emissions of CO2 over the course of its service life of 20 years, a V903. 0 MW offshore wind turbine will cut emissions of CO2 into the environment by 210, 000 tons in relation to generating the same amount of energy at a modern coal red power station. Turning our attention to another, but equally relevant, issue i. e. global consumption of the rapidly dwindling oil reserves the same tur bine will generate the same amount of energy as would stem from no fewer than 151, 640 barrels of oil during its service life. And arguments of this kind brook no discus sion climate hysteria or not. 202007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=21http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=2121 Turbines in the debate Even though the international climate debate features all kinds of suggestions regarding the solutions that can provide the best possible balance between cost and effect, wind power and other options to fossil fuels are being put forward again and again. Most people agree that, in both the long and the short term, we need technologies that can reduce our dependency on oil, coal and gas. Politicians, too, are increasingly recognising the fact that, to a large extent, the solution will depend on our willingness to invest in research into new technologies, for example. Vestas is very satis ed to note that many groups are now highlighting wind power as a key factor in the battle against global warming. At the same time, emphasis is being placed on the fact that the argument of zero CO2 is just one of many good arguments in favour of expanding the role played by wind power in the energy mix. Most importantly of all, perhaps, is the fact that today, wind power can compete on price with conventional sources of energy if the comparison is made on equal terms. Moreover, the geopolitical events of recent years have made it clear that it is crucial to focus on supply reliability and selfsuf ciency. As is well known, the reserves of fossil fuels are not inexhaustible, whereas the wind will always be there and what is more, it is free. The clean solution When the energy debate turns to pollution, it is most often carbon dioxide that attracts most attention even though, strictly speaking, CO2 is not actually a pollutant per se. And although wind turbines generate almost no CO2, it is just as important to take into consideration the fact that, compared to fossil fuels, wind power saves the environment from vast emissions of actual pollutants such as sulphurous and nitrous oxides SOx and NOx. Moreover, a V903. 0 MW wind tur bine, for example, generates 35 times as much energy during its service life as is consumed for its production, transporta tion, installation, operation and decommissioning. Fast MW Wind power is also the obvious choice from the perspective of the increasing need for rapid expansion of capacity that is following in the wake of almost explosive economic and industrial development in many places worldwide. Installing a wind power plant is without compare the fastest way to estab lish generation of a high volume of MW. No other technology comes close. With regard to the expansion of capacity, Vestas is also highlighting the fact that politicians will soon need to turn their attention to a completely different and rarely mentioned side effect of coal power in particular water consumption. Coal red power plants use vast amounts of water for cooling, and even though it may sound paradoxical against the back ground of the forecasts of terrible ooding as a result of global warming, the shortage of clean drinking water is nevertheless likely to become a serious problem in the nonetoodistant future unless we start to focus on the issue. This is a point that Vestas is consistently making, while simultaneously stressing the fact that wind turbines do not use as much as a single drop of water when generating electricity. FACTS ABOUT WIND ENERGY Wind is an inexhaustible, free source of energy Wind power can compete with conven tional sources of energy in terms of costs Wind power reduces dependence on imported energy Wind power facilitates fast rampup of extensive production capacity Wind power contributes to reducing CO2 and other greenhouse gas emis sions2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=22http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=22Towering expectations for quality 222007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=23http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=2323 Highly developed competences are essential in assuring the necessary level of quality in the towers for Vestas turbines, which can measure up to 105 metres in height. Moreover, as 85 per cent of tower production is outsourced to external suppliers, there is every reason for Vestas Towers to make a real effort to assure this quality through control, dialogue and the transfer of competences. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=24http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=24With an outsourcing level of 85 per cent, Vestas Towers is far and away the Vestas busi ness unit that is most dependent on suppliers delivering the agreed performance. This applies not only to the physical product quality, but also and equally to aspects such as cap acity, capability, delivery and logistics. Anders Kofod, Vice President for Quality, Safety and Environment at Vestas Towers, relates that this is the reason why a range of different proced ures are used to follow up continuously on the performance of suppliers. Generally speaking, the work in this area can be divided into two main groups 1. Already approved suppliers. Vestas Towers currently has around 80 strategic suppliers in this category all over the world in Europe, China, Vietnam, India and the United States. 2. New, potentially suitable suppliers. As regards our existing suppliers, we have ap plied two types of control for many years, says Anders Kofod. Four times a year, we make scheduled visits to these suppliers and perform a Product Audit, in which we focus on the physical quality of the products to ensure that they meet our speci cations. Anders Kofod goes on to explain that during these scheduled visits, Vestas takes samples from production stretching back over a long period. This is to ensure that even though the suppliers are prepared for the audit, they do not have the opportunity to polish the result by making an extra effort in the runup to our visit. In addition to the four annual Product Audits, Vestas Towers performs an annual NDT Non Destructive Test Inspection. Anders Kofod relates that in this test, the company focuses in particular on welding competences, checking the welds in the towers and anges, for example. In connection with the annual NDT Inspec tions, Vestas Towers sometimes also carries out ultrasound inspections of the welds, as Anders Kofod explains This might seem like rather a lot of controls and tests, but the weld quality in our towers is crucial to the service lives and safety of our wind turbines, so we make ex tremely stringent demands on our suppliers. The seven steps At the start of 2007, Vestas Towers decided to supplement the Product Audits and NDT Inspections with a third pillar in the working relationship with suppliers. The new pillar, or tool, has been designated Assessment, and has to do with clarifying all the commercial risks associated with the individual supplier. It is based on a series of questions that deal with four central areas 1. capacity 2. capability 3. innovation 4. various nancial aspects. In the area of capacity, Vestas Towers works to establish, for example, whether the sup plier has changed his storage conditions and whether Vestas share of the suppliers total production capacity has altered. As a part of the Assessment process, the company also checks on the suppliers work on safety and environmental issues. For example, if the sup plier is expanding his production facilities, we check whether the work is being carried out responsibly i. e. that the scaffolding is secure, that the employees are using the required safety equipment, and so on, says Anders Kofod, who continues It is quite simply essential for us to ensure that our deliveries always arrive on time and always feature the right quality. 242007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=25http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=25In addition to being more holistically oriented than the other two tools, Assessment stands out in that it involves the senior management at the suppliers, which is required to answer some of the questions in the questionnaires mentioned above. Once Vestas Towers has received and processed the answers, the supplier is given a total score, which ranks them on a sevenstep performance scale. At one end of this scale is the classi cation weak performance, while suppliers at the other, more attractive, end of the scale can be awarded the highest rank that of worldclass performance. Experience from the automotive industry By way of an extension to the suppliers rank ing on the sevenstep Assessment scale, Vestas works with the supplier to prepare a Perform ance Contract. This document lists the areas in which the supplier is to implement initiatives to boost performance and reduce risks. All in all, Assessment puts us in a much better position to follow developments in performance at the individual suppliers, says Anders Kofod. At the same time, Anders Kofod stresses that in future, the Assessment results will become even more important because the policy of Vestas Towers is to enter into closer and, therefore more mutually obligating partner ships with those suppliers who rank highly in the Assessment survey. 252007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=26http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=26According to Anders Kofod, Vestas Towers can, without fear of contradiction, use the designation worldclass performance about itself when it comes to carrying out Product Audits and NDT Inspections. However, he freely admits that the Assessment mindset is new, and that the introduction of the concept has made it necessary to tap into the experi ence generated by other industries. It is a matter of optimising on many interfaces, which makes new demands not just on the QA staff themselves, but also on product developers, purchasers, logistics staff, project managers, sales and service units and so on. He continues In order to make the very most of the concept, we drew on experience from the automotive industry. Subsequently we launched a major internal Supply Management Programme. Anders Kofod relates that all the appropriate staff at the Vestas Towers head of ce in Varde, Denmark, have already been familiarised with the use of Assessment, and that all the resources required were used to help the staff to view suppliers from a more holistic perspective. 262007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=27http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=27The new and broader approach to working relationships with suppliers means that, for example, the strategic purchasers at Vestas are, in principle, to act as consultants for the suppliers. It is important to stress that the Assessment concept is an expression of a strengthened working relationship. For this reason, we are naturally committed to working with suppliers to improve the areas where improvement is necessary and possible in relation to the speci c suppliers Performance Contract, says Anders Kofod. Asked about his expectations for the Assess ment concept, Anders Kofod replies without hesitation I am convinced that within as little as six months, we will be able to see the effect of the new concept on our suppliers KPIs Key Performance Indicators, even in the Captains Performance Cockpit, which helps provide the Vestas Government with an overall status image of operations, including the supplier situation. At the same time, Anders Kofod stresses that the initiative has met with a positive reception both internally and externally. Within the company we have actually been looking for a programme like this for quite a while, and among suppliers, there is a lot of support for this new holistic and constructive approach to working relationships, he states. From head to head As previously mentioned, Assessment forms part of the programme that Vestas Towers applies to existing suppliers. When a potential new supplier is to be evaluated, or when an existing supplier is to be upgraded to a larger volume of deliveries, another process is used. This process starts with the preparation of a Business Case. A central aspect of this case is a risk pro le of the supplier in relation to parameters such as geography, infrastructure, production and storage conditions, mainten ance of equipment, and organisation. With the turbine sizes we are working with today, the area of logistics has become a key aspect of our working relationships with sup pliers, so it is essential that we carefully evalu ate the infrastructure in relation to main roads, shipping harbours and the like, explains An ders Kofod, who goes on to relate that Vestas Towers uses the Business Case to evaluate the basis for a working relationship and then issues a number of trial orders. Depending on the new suppliers experience with wind turbines, this phase will typically last 36 months. If it transpires that the suppliers welding staff need to improve their competences, Vestas Towers calls on its tried and tested programme for transferring technology and competences, as Anders Kofod explains. Competence transfer can be carried out in two ways either the suppliers staff are sent to Vestas Towers for an intensive training course, usually at the factory in Varde or Vestas Towers sends a team of its most highly skilled welders to the supplier for a period to train the suppliers workers. Both methods are used to a great extent, and it is crucial that this important competence transfer is performed from head to head and from hand to hand, so to speak. The people we call upon for tasks of this kind are among the best of their type in the world, which allows us to be con dent that the new suppliers will achieve the level necessary to match our high requirements on quality. Once a supplier following the successful transfer of competences and the successful completion of trial orders has demonstrated his capacity to handle the commission, a Per formance Contract is prepared. When this is in place, the working relationship has become of cial. So even though the tower is perhaps not the component that appears to be the most complex part of a turbine, there can be no doubt that we at Vestas Towers also need ef cient processes and tools to help us assure the quality of our working relationships with our suppliers, says Anders Kofod, who concludes And with the setup we have in place now, I feel that we are really well equipped for the future. 27 Four times a year, we make scheduled visit2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=28http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=28282007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=29http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=29The need to upgrade the electricity transmis sion grid is the most important factor limiting the growth of wind power in Europe, says Chris Veal, a director of UK power company Airtricity. Other power companies, grid operators and energy consultants agree. So does the Euro pean Commission, and so does Vestas. If we are to increase the pace at which wind power is expanding, politicians will have to back their visions with action in improving the grid and quickly, says Vestas President and CEO Ditlev Engel. Upgrading Europes electricity transmis sion system will cost billions of euros, but proponents say it will create an energy system that will keep the EU competitive, as well as al lowing us to meet our green energy promises. Without an open internal energy market and a common energy policy, the EU will slip into economic decline within a quarter of a century, Airtricity claims. The USA, too, is taking grid upgrades ser iously. According to J. Charles Smith of the Utility Wind Integration Group, a US industry association, states such as Texas and Califor nia have broken the transmission logjam by deciding to build new grid capacity ahead of demand in some cases breaking new ground with respect to rules imposed by the Federal Energy Regulatory Commission FERC. Grid investment is not just about putting up more overhead lines. Information technol ogy, changes in power markets and new legal 29 A net consensus Denmark has proved that high levels of wind power are technically feasible, but to meet its renewable energy targets Europe will have to invest billions in the power transmission grid. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=30http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=3030 frameworks can all help grid companies use their existing capacity better. Giving consumers more control over when they buy their power, and the prices they pay for it, could also make better use of the existing infrastructure by smoothing out the peak loads that determine the minimum capacity of the grid. This complex mix of options will have a huge in uence on the longterm future of wind energy. If we wanted to, and with appropriate storage, we could have 100 per cent wind power, says Thomas Ackermann, CEO of German wind energy consultancy Energynautics and a lecturer at the Royal Institute of Technology, Stockholm, Sweden. There are already islands where 80 per cent of the power comes from wind. Its just a question of how much we are prepared to invest. Supply and demand The European power transmission system is a patchwork controlled by around 50 organisa tions who have rather limited incentives to cooperate, notes Thomas Ackermann. There are local groupings, such as between the Nordic countries, but in general little power is traded across national borders. Many lines are overloaded, and uptotheminute information about power ows is often lacking. This can res ult in blackouts, such as the one that affected much of northern Europe on 4 November 2006. The EU plans to have 20 per cent renewable energy by 2020. Because renewable electricity is commercially ahead of renewable transport fuels, the European Commission acknowledges that by 2020 more than a third of our electri city is likely to come from renewable sources, with more than 10 per cent from wind. Since electricity is hard to store in large quantities, the grid companies must balance generating capacity and demand at all times. When the wind is not blowing, power has to come from elsewhere, and when the amount of wind power changes suddenly, reserves in the power system must react to compensate. The easier it is to transport electricity over long distances, the more likely it is that elsewhere can mean a wind power plant in a region where the wind is blowing, or another renewable energy source, rather than a fos silfuel or nuclear power station. Transmission 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=31http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=31is also needed to enable balancing reserves from larger areas. Grid investment, backed up by the right market controls and political rules, can enable largescale use of wind power. The Nordic example Most experts agree that 10 per cent of wind power on the grid, or even more, is unlikely to need signi cant new infrastructure, but Den mark has shown that much higher levels are possible. The country routinely gets more than 20 per cent of its power from the wind, and for the month of January 2007 the gure was 36 per cent. According to the Danish transport and energy ministry, by 2025 wind could ac count for half of all electricity generated. Denmark achieves this remarkable perform ance by exchanging power with Norway, Sweden and Germany. West Denmark, for instance, can export its entire wind generat ing capacity of 2. 3 GW, and takes advantage of this whenever winds are strong and Danish demand is low. The exported power saves Norwegian and Swedish hydroelectric re sources, which can then generate green power that Denmark imports when wind is scarce. Though this power trading system works well, rapid growth of wind power in northern Germany may cut Denmarks future export capacity. Meanwhile, east Denmark remains electrically isolated from west Denmark, where most of the wind turbines are. Gitte Agersbæk of Energinet. dk, Denmarks recentlyuni ed grid operator, explains that within the next two or three years a new interconnector will link the two halves of the country, allowing more wind power to be used within Denmark. Bigger, better grids Similar investment all over Europe is helping grid operators keep pace with rising electri city demand, as well as meeting the speci c needs of wind power. In March, for instance, the company National Grid announced that it had committed 2. 5 billion to reinforcing the network in England and Wales. Airtricity is proposing a Supergrid linking new offshore wind power plants all round the coasts of Europe. The projects rst phase, costing EUR 20 billion, would have 10 GW of interconnected generating capacity, split between the Netherlands and the UK. Though the timescale is not yet clear, the politicians are excited, says Chris Veal. There are no funda mental obstacles, he adds. The technology is proven, and we would need few, if any, changes in legislation. If the 10 GW foundation project is successful, the Supergrid could ultimately expand to cover the Baltic, the North Sea, the Irish Sea, the English Channel, the Bay of Biscay and the Mediterranean. Such a large geographical spread would do a great deal to smooth out variations in Europes total of wind power, points out the European Wind Energy Association as weather systems move across the continent, output from the Supergrids tur bines will increase in some areas and decrease in others. Key to the technical success of such a large project is a power transmission technology known as HVDC highvoltage DC. For long distance transmission, HVDC is preferred over 31 Once the new grid is ready, installing large numbers of wind turbines will be quick, easy and costeffective. You might call it the power industrys answer to plug and play. Finn Strøm Madsen, President, Vestas Technology RD. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=32http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=3232 conventional AC cables because it has lower losses. The Supergrid would use a relatively new HVDC variant that Airtricitys technology partner, ABB, says can even make underground cables competitive with overhead lines. Affordable underground transmission would also be attractive for many onshore projects, where planning permission for new overhead lines can be hard to get. A report on wind integration published in January on behalf of European grid operators emphasises the prob lem of planning delays for new power lines. Intelligence and storage Not all grid upgrades involve new cables. Infor mation technology, for instance, offers another way to squeeze more out of existing systems. Often the transmission system operator has little information about what the wind turbines are actually doing, says Thomas Ackermann, and some of their IT systems date back to the 1980s. Helping to solve issues like this is the EUsupported Smart Grids project, which looks at many of the technical improvements needed for tomorrows grids. For example, Thomas Ackermann says, the rated capacity of most overhead lines takes no account of changing wind speed. Strong winds keep the overhead lines cooler, and this increa ses their capacity so a realtime wind monitor ing system could increase the capacity of parts of the grid by 10 per cent or more, at exactly the time when wind power is at its highest. Good predictions of the amount of wind power available in the hours or days to come are also important to the grid companies. The accuracy of wind forecasting has improved considerably in the last ve years, says Han nele Holttinen, an energy systems expert at VTT Technical Research Centre of Finland. Another way to add intelligence to the grid is known as demand management. At its simplest, this means disconnecting large electricity users whenever the system becomes overloaded. More sophisticated systems could allow individual households to vary their consumption minute by minute as the price of electricity varies, explains Poul Sørensen of Risø National Laboratory in Denmark, who is working on a demand management initiative known as Syslab. Many demand management ideas involve some kind of energy storage, such as a domes tic freezer that can be switched off for a couple of hours when power demand is high, and then topped up when the electricity price falls. A large eet of electric vehicles would be another valuable storage resource, Hannele Holttinen points out, storing cheap electricity at night and using it during the day. Combined heat and power CHP plants can provide yet another storage option. CHP plants are widespread in Denmark, where their ability to store heat for a few hours at a time is important in balancing uctuations in wind power, says David Toke, a researcher at Birmingham University in the UK. In some circumstances it also makes sense to use wind power for direct electric heating, he adds. Yet another way in which the grid can adapt to the new demands of renewable energy is by adding large centralised energy storage. Hydroelectric plants are a classic example, but largescale chemical storage in the form of giant batteries is nearing commercialisation. Canadian company VRB Power Systems has developed a system that can supply several megawatts for several hours, and has installed demonstration systems in the USA and Japan. The learning curve From a regulatory standpoint, many comment ators agree that the legal separation between transmission grid operators and generating companies does not always prevent con icts of interest that can hinder the growth of wind power. Market liberalisation and unbundling of generation from transmission need to con tinue. In particular, shortening the timescales of markets by introducing intraday and bal ancing markets will help the system operators 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=33http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=3333 to match the variations in wind power, says Hannele Holttinen. Successful examples of crossborder trading include the Nordic countries, where frequency control of all four countries is coordinated by grid operators in Norway and Sweden through a common balancing market. International markets are also evolving in France, Belgium and the Netherlands. Although many grid operators now say they are enthusiastic about wind power, they are on a steep learning curve. When they get their rst few wind turbines, grid companies are generally enthusiastic, says Thomas Ackermann. Then as the amount of wind power rises, they start to panic. Finally, when they realise they cant stop the growth of wind power, they start to think, and realise that it can be done after all. Better dialogue with wind turbine manu facturers and new university courses covering wind power integration will help, Thomas Ackermann adds. Grid operators who learn to handle wind power well can bene t from the positive features of wind, such as good control of frequency and reactive power, and the abil ity to shed load at short notice. To a large extent we are waiting for im provements to the grid, says Vestas Technol ogy RD President Finn Strøm Madsen. Once the new grid is ready, installing large numbers of wind turbines will be quick, easy and cost effective. You might call it the power industrys answer to plug and play. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=34http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=34TIME is money 34 Wind turbines are a really good idea. When they are running, that is. Every time a Vestas turbine stops for reasons other than too much or too little wind, or scheduled maintenance it costs both Vestas and the customer money. For this reason, the fourletter abbreviation MTBI is crucial to the continuous improvement of Vestas wind turbines. The abbreviation stands for Mean Time Between Inspections, and raising the associated gure would provide all kinds of bene ts for all the parties involved. Financial bene ts in particular. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=35http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=35Last year, Vestas Technology RD started work on one of the 13 Constitution Projects that play an important role in the panorgan isational strategy entitled The Will to Win. In broad terms, the project No. 8 has to do with improving product performance, and one of the parameters used to measure its success is MTBI, i. e. the average number of days be tween the visits that service teams pay to each individual wind turbine. Russell Young, Vice President of Operations under Vestas Technology RD, is the man responsible for the project. With regard to the objectives of the project, he explains Inspec tions cost both us and the customer money it is as simple as that. Therefore, we have set ourselves the speci c target of doubling our current MTBI by the end of 2008 at the latest. Modern turbines are remarkably complex pieces of machinery. For this reason, Russell and his team found it necessary in his own words to attack the beast from several sides. Thus far, ve initiatives have been implemented, and they have already had a positive effect on the MTBI, particularly with regard to the release of new turbine versions. A little idea with a big impact The objective of the rst initiative was to improve the performance of the new wind turbines that leave Vestas factories all over the world. Here, the key was to implement all the improvements big and small developed 352007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=36http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=36or coordinated by what is known as the CIM Team. CIM stands for Continuous Improve ment Management, and one speci c example of an improvement the team introduced is a new vibration damper, which reduces the load on key components in the hub. The idea came from one of our creative service technicians at Vestas Mediterranean, and neatly demon strates how every part of the Group is contrib uting to the ongoing improvements that are so crucial to Vestas, relates Russell Young. With regard to implementing the various CIM cases in the production process, Russell Young explains that the company is already up to date with the 1. 65 MW and 3. 0 MW platforms, while the nal improvements will be fully implemented on the 2. 0 MW platform by the end of the year. Better braking The next aspect that Russell Youngs team took on was another important factor in the opera tion of a wind turbine braking. As the turbine rotors measure up to 90 metres in diameter and weigh up to 41 tons, it is not dif cult to imagine the forces that are released when the brakes have to be applied especially in emergency braking situations. It is therefore of appreciable importance to the ongoing op eration and total service life of the turbine that the braking strategy applied not only minimises the number of braking processes, but also ensures that the least possible load is placed on the entire construction during braking. We took on the challenge by de ning a Controls Optimisation Project, which was implemented in two phases, explains Russell Young. The rst phase had to do with improv ing the existing braking strategy, with especial emphasis on making the braking gentler. In phase two, an extra softener was added to the braking process by the designers, while at the same time, work was started on reducing the number of alarms that trigger emergency braking. We are currently testing the results of the phase 2 work on our 2. 0 MW and 3. 0 MW platforms, and I think we will be ready to release the new braking strategy this October, says Russell Young, who goes on to add that another important element of the Controls Optimisation Project involved including a technical solution called the Advanced Grid Option as a standard feature in all new wind turbines. This solution helps improve turbine performance even further, so the fact that this feature is now standard on all Vestas turbines is an added bonus for our customers. Optimisation of operating wind turbines With the numerous CIM cases well on their way to being implemented in the production process, the team working on Constitution Project No. 8 has turned its attention to the thousands of Vestas wind turbines that are already operating all over the world. Our third initiative was to implement the CIM cases 362007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=37http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=37out in the eld, relates Russell Young, who highlights the fact that a special task force a kind of crack service team comprising some of the most highly skilled mechanics and docu mentation staff at Vestas has been working hard to optimise the 3. 0 MW platform, starting with the Laukzemas Wind Farm in Poland. The objective of this teams efforts is to prepare a kind of problemsolving manual for the 3. 0 MW platform, for the sales and service units to use in their ongoing work. Proactive problem solving Looking to the future, Vestas has chosen, under Constitution Project No. 8, to target the service performed on its turbines. Regarding this phase of the project, Russell Young makes it clear We want to improve our service and troubleshooting capabilities. We also want to improve our spare parts performance so that service technicians are not left waiting around for spare parts when they arrive at a wind turbine. And rst and foremost, we are work ing to improve our forecasting capabilities. He stresses that this last aspect is inextricably linked to Constitution Project No. 9, which has to do with utilising the enormous volumes of data Vestas constantly receives from thou sands of wind turbines all over the world. This is really the key issue being able to recognise when things are not working properly and to predict what will happen, so that we can be fully prepared when we go out to service the turbine. And that is where Constitution Project No. 9 comes in as part of Constitution Project No. 8, because we actually look for noncon formities, where some turbines are performing differently to other turbines of the same type at the same site. We then identify the root cause of these nonconformities so that we can x the problem during a scheduled service visit and prevent the fault or error developing. In conclusion, Russell Young states that by moving from unplanned stoppages to planned maintenance, there is much to be gained in the area of costef ciency for both Vestas and the customer. The way the wind blows A fth initiative that has already been imple mented in the project work of the six sales and service units is the establishment of a Technical Risk Committee. This involves a number of experienced and very competent project spe cialists evaluating the risks linked to erecting a wind farm at a given site. The committee re views elevation, seismic aspects, temperatures, turbulence intensity all the things that allow the sales and service units to evaluate how much risk is involved in a given project. This gives us a better basis for deciding what kind of turbines to recommend to the customers, and what kind of service contract we would like to put together, says Russell Young. As mentioned above, the ultimate aim of Constitution Project No. 8 is to double Vestas MTBI from 2006 by the end of 2008. Russell Young is convinced that, based on the techno logical improvements that have already been implemented, the MTBI will have improved signi cantly before the end of this year. The remaining part in relation to the original object ive is to be earned in by the sales and service units before the end of 2008, for example by optimising our capacity to forecast faults and errors and deal with them before they become a reality and an expense, he says, and concludes by emphasising that Vestas already has a number of wind turbines operating with an MTBI that is much higher than the 60day target although he reiterates that the ultimate goal for 2008 applies to all Vestas turbines, including those that have already logged years of service. 372007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=38http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=3838 Investment in the future Capacity expansion2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=39http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=392007 2008 2009 39 More than EUR 300 million in investments in factories and development facilities in just one year. This is the gure that makes a very clear statement about a company experiencing impressive growth Vestas. In the rst six months of 2007, the red ribbons have already been cut at ceremonies to mark the of cial opening of three new facil ities two factories in Tianjin, China, for nacelle assembly and generator production and an extension of the Vestas blade facility on the same site. At the same time, two additional blade factories are being constructed in Spain and the United States Colorado. When the construction dust nally settles in 2008, Vestas will have increased its capacity by more than 1, 000 turbines a year only counting the production from new facilities, that is. However, the establishment of new produc tion facilities is more than simply a question of keeping up with the constantly increasing demand, stresses Søren Husted, President of Vestas Nacelles The new factories will help to improve the overall logistics setup for Vestas worldwide. This applies in particular in relation to a number of the most promising markets in Asia, for ex ample. At the same time, the new factories will help to assure the correct level of expenses in relation to the market, he explains. Ole Borup Jakobsen, President of Vestas Blades, adds In 2007 and the years to follow, Vestas will be making huge investments in new factories. The result will be a company with stronger global presence, improved logistics and capacity adapted to suit a market that is currently undergoing explosive growth. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=40http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=40Our blade factories are designed in such a way that it is possible to expand them to allow the manufacture of longer blades in the future, or to add extra production lines to existing facilities. Kjær Lundø Jacobsen, Vice President of Business Development, Vestas Blades. It is very expensive to transport our products from one continent to another, so it is clear that establishing factories on additional markets will help reduce both logistical costs and transport challenges in general. In addition, establishing these new produc tion facilities will provide us with a better balance between expense and income in US dollars and associated currencies. This will help reduce the risks linked to exchange rate uctuations between the euro and the US dol lar, he explains. Søren Husted states that local presence on additional markets has another bene t On several markets, including those of China and India, it is crucial for Vestas to be a local manufacturer. Either because we would not be competitive on account of the duties on imported goods, or due to national require ments for the local production of a speci c percentage of the turbine components, he continues. Longterm planning All in all, Vestas expects the total cost of its construction activities in 2007 to amount to somewhere between EUR 310 million and EUR 330 million. However, the rst spadeful of soil is never turned on a new project before the successful conclusion of a long process to map the requirement for new capacity on the markets in question, and to evaluate the most appropriate placement for the new plant. We take as our starting point the delivery plans that chart the expected demand for the coming years. This approach allows us to forecast how our sales are likely to develop, which is one of the aspects we take into ac count when making decisions about expanding capacity, says Ole Borup Jakobsen. Once the decision to build a new plant has been taken, it is time to start work on a comprehensive research project intended to nd the optimal location for the factory. Two of the most im portant criteria in this context are logistics and recruitment opportunities. For example, the factory in Windsor, Colorado, is located close to a railway junction because in the United States, blades are often transported by rail. In addition, the site has good access to an appropriate road network. Finally, the location in Windsor establishes our presence in a region with a population of 500, 000 and three universities within a radius of 30 kilometres, explains Kjær Lundø Jakobsen, Vice President of Business Develop ment at Vestas Blades. During the selection process, he visited 11 possible locations in the United States before the decision was awarded to Windsor. The thorough preparation work pays off. The new factories provide us with the capacity to cover requirements and ensure that we have the best possible geographical positioning for the production of the various blade types, he continues. The reason why Vestas is focusing on blade factories in 2007 and 2008 is that the associated production processes include a number of process times that cannot be shortened the time required for the blades to harden, for example. There fore, blade production cannot be adjusted by switching to two or threeshift operation. For the same reason, it is important to assure ex ibility in other ways. Our blade factories are designed in such a way that it is possible to expand them to allow the manufacture of longer blades in the future, or to add extra production lines to existing 40 This is what Vestas blade factory in Windsor, Colorado, USA will look like. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=41http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=412007 2008 2009 facilities. This is one of the options we utilised when expanding the factory in Tianjin, states Kjær Lundø Jakobsen. Focus on suppliers When conversation turns to the subject of growth in the wind power industry, it often includes mention of the lack of components that has hindered the expansion of the sector for several years. What bearing does this have on Vestas signi cant expansion of its own capacity In this context, our intensi ed work to enter into longterm working relationships with our suppliers plays an important role. It is against this background, for example, that we have observed our suppliers making large invest ments and expanding their capacity appre ciably, which is a precondition for expanding the capacity of the entire supplier chain, says Søren Husted. This process is set to remain in the spotlight for some time to come, as will the work to monitor and adjust Vestas own production capacity on an ongoing basis. The work to monitor our capacity and trim it to ensure that we can meet the global demand for our products is a continuous pro cess, concludes Kjær Lundø Jakobsen. 41 New factories and other plants in 2007 and 2008 Nacelle assembly factory in Tianjin, China. Production commenced in March 2007. Annual capacity 350 nacelles. Generator factory in Tianjin, China. Production commenced in June 2007. Annual capacity 350 generators. Blade factory in Tianjin, China extension. Production commenced in July 2007. Annual capacity including original factory 1, 200 blades. Blade factory in Windsor, Colorado, United States. Production to commence in February 2008. Annual capacity 1, 200 blades. Blade factory in Daimiel, Spain. Production to commence in July 2008. Annual capacity 1, 200 blades. New research and development centre for Vestas Technology RD in Århus, Denmark. Scheduled to start operations in Q4 2008. Relocation and expansion of electronics factory, Vestas Control Sys tems, Hammel, Denmark. Scheduled to start operations in Q2 2008. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=42http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=42Focus on future consumers of energy 422007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=43http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=4343 Through a newly established working relationship with the LEGO Group, Vestas is aiming to generate interest in wind power among children, the young at heart and other stakeholders. The working relationship with the LEGO Group has a dual purpose, but the message is the same Vestas wants to teach coming generations to think wind power. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=44http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=4444 Greater interest in technology and wind energy among children and adults. That is the goal of Vestas new working relationship with the LEGO Group, which is set to run until 2009. 1 June 2007 thus marked the start of a working relationship between two of the largest Danish companies. For two months from this date, travellers at LAX Los Angeles international airport had the opportunity to view an exhibition comprising a LEGO model of the Statue of Liberty and display cases pre senting wind turbines in a variety of settings. The exhibition also featured a number of lms about wind energy. A common trait of all the exhibits in the display cases is that the public can interact with them. For example, at one of them, viewers can blow onto a sensor that makes the turbines start generating electricity. This is illustrated by lights switching on in the houses, giving the viewers the impression of the current leaving the wind turbine and being used in an everyday situation. Ursula Bækkegaard, Project Manager for Exhibitions Events at Vestas Group Com munications, is the initiator of the working relationship with the LEGO Group. She was at the airport shortly after the exhibition opened. There was a great deal of interest in the ex hibition among both children and adults, who were all keen to try out the various interactive features. The response from passersby was very positive, with people stating that they thought it was a good, different advertisement for wind power, and I am very pleased with the enthusiasm that the exhibition is generating among people of all ages, she says. Thomas Michel, Creative Concept Developer at the LEGO Group, agrees Interest levels were high even when we were working to set up the exhibition. People kept coming over to see what we were doing. In fact, one man came up to me to thank us for making him experience childlike joy again, he says with a smile. In 2007 and 2008, the exhibition entitled Wind is Free will be on display at selected On 1 June, Vestas working relationship with the LEGO Group lifted off at Los Angeles International Airport, where travellers were given the chance to nd out more about wind energy. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=45http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=4545 airports in the United States and Canada. From autumn 2007 until 2009, Vestas and the LEGO Group will also be setting up similar exhibitions at airports in Asia and Europe to entertain and amuse travellers. Putting a face on the company From autumn 2007 onwards, in addition to its presence in the global airport concept, the Vestas logo will be on display at the regional, national and international FIRST LEGO League FLL tournaments, where children under the banner of this years challenge, the Power Puzzle will compete with each other in both theoretical and practical assignments related to sustainable energy. The childrens task will be to nd out how our choice of energy sources for everyday uses affects the environment, economics and life in general. As the principal sponsor for this years FLL challenge, Vestas is providing the tournaments with more than just nancial support. All over the world, Vestas employees from all levels of the organisation are currently getting involved as mentors to assist the children on their work on energy issues. I think this is a good way to promote Vestas name and message to future consumers of en ergy. We are more than an invisible sponsor. By allocating each team a Vestas employee i. e. someone who works with wind energy on a daily basis as a mentor, we are giving the children the opportunity to put a face on the company. Similarly, this gives us the chance to in uence the young peoples view of the sustainable energy sources of the future, and to teach them about the options there are to oil and gas, concludes Ursula Bækkegaard. In 2008, Vestas employees will be helping children all over the world to solve assignments centred on sustainable energy. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=46http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=46Turkey goes with the wind 46 A new law in support of renewable energy has kickstarted the wind power industry in Turkey. Quick off the mark, Vestas has already won ve contracts in the country rated as one of the most powerful wind zones in Europe. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=47http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=4747 50 V903. 0 MW turbines are destined for two of the biggest wind projects in Turkey to date. The recent orders bring the total wind turbine capacity sold by Vestas on this emerging mar ket up to 191 MW, two years after renewable energy gained the governments wholehearted backing in a new law. In May 2005, the Renewable Energy Law nally paved the way for exploiting Turkeys huge wind potential put at 71, 000 MW by the Wind Force 2005European Commission Study and, in Europe, second only to the UK. Although the government authorised the installation of wind power systems up to 1500 MW as early as 2002, the law nally made the opportunity viable. Vestas was ready and waiting. On the one hand you need authorisation, says Rainer Karan, General Manager of Vestas Italia. On the other you need a law that sup ports renewable energy and the money to invest in it. Today we can explore the opportunities thanks to the stable market conditions and the fact that the banks now believe in the market. Rapid market entry Vestas Italia led the effort to build up relations with local contacts for several years prior to 2005. These preparations enabled rapid mar ket entry when the right conditions arrived for getting the Turkish wind industry airborne. As Rainer Karan comments, The timing has been just right. Our organisation has focused on the Turkish market for some time and, after a slow start, the resources and time invested in the development of this area have paid off. The Renewable Energy Law was exactly what Vestas and potential Turkish investors were waiting for. Most importantly, for wind farms installed up to 2011, it introduced a feedin tariff equivalent to the average whole sale electricity price of each previous year for the rst 10 years of operation. In addition, the law gives energy producers the security of a minimum energy price in euro EUR 50MWh reducing the risk of currency uctuations otherwise faced with prices in Turkish lira. Because of the 10year guarantee, it is possible to base business plans on this stable price. As a result, banks have become willing to provide capital for investments in the wind industry, Rainer Karan explains. Another major aspect of the law is that wind energy producers have gained the option to make direct sales at higher prices to private consumers most likely large industrial com panies as well as to the grid operator, Turkish Electricity Transmission Corporation TEIAS. According to Rainer Karan, this is an important move towards the privatisation of the power market in Turkey. Privatisation is a valuable safeguard for the wind sector if, in the future, the government withdraws its support. The Turkish wind industry is still at a very early stage of its development, and we are proud to be a part of the growth which we are con dent will take place over the next few years, says Rainer Karan left. Right Francesco Liuzzi. 2007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=48http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=48Within a short time, we have gained a very strong foothold on the market. An order for 30 3 MW turbines is big even on the leading wind markets. Francesco Liuzzi, Sales and Marketing Director for Vestas Italia. High growth in energy needs The law aligns Turkey more closely with the EU, following the example of leading renew able energy nations such as Germany and Spain. At the same time, the government increasingly recognises wind as a means of sat isfying the countrys rapidly growing demand for energy while reducing dependence on imported fossil fuels, which currently feed 70 per cent of gross energy consumption. Electricity consumption in Turkey is growing at some eight per cent a year. While 74 per cent of electricity is currently produced by thermal power plants, Turkish wind resources are, in theory, suf cient to meet all electricity needs. The windiest areas have been identi ed around the Marmara, Aegean and Black Sea, some of the most highly populated areas, mak ing them conducive to easy energy distribution. Part of the energy mix By 2015, TEIAS expects wind to have become an important part of the energy mix the accu mulated installed capacity is forecast to reach about 1500 MW, representing 2. 5 per cent of Turkeys accumulated installed capacity. Vestas sales to date are already making an impact, says Rainer Karan. What we have sold now will be in operation in 2008, when it will account for about 0. 3 per cent of the countrys electricity production, he adds. Due to the excellent wind conditions, most wind farms in Turkey operate for around 3, 500 to 4, 000 hours a year, compared with around 2, 000 hours elsewhere in Europe. So the amount of power generated is very high. Strong foothold Now a pro table business prospect, Turkeys wind sector is attracting investments by large Turkish corporations with core business inter ests outside renewable energy. The V903. 0 MW has so far proven the most popular model, providing the entire basis for Vestas two most recent and largest contracts. The Samli project for 30 V903. 0 MW turbines the biggest wind project ever realised in Tur key is the third order placed by Aksa Energy in less than a year. The Sanko Group, which provided Vestas with its very rst Turkish con tract in February 2006, is behind the order for another 20 V903. 0 MW turbines for location in the Catalca region near Istanbul. Within a short time, we have gained a very strong foothold on the market. An order for 30 3. 0 MW turbines is big even on the leading wind markets, says Francesco Liuzzi, Sales and Marketing Director for Vestas in Italy and the Eastern Mediterranean countries. Rainer Karan points to the customer dia logue programme that has been introduced to ensure a constant ow of feedback from customers. The Turkish wind industry is still at a very early stage of its development, and we are proud to be a part of the growth which we are con dent will take place over the next few years. he says. As the market unfolds, direct contact with the players is fundamental. To this end, our customer dialogue programme will provide feedback that will enable us to satisfy our customers requirements a priority for us at Vestas. The opening of the Turkish wind sector is just beginning to loosen the countrys depend ence on oil and gas. With the backing of na tional legislation and some of Turkeys biggest industrial players, Vestas has every reason to be optimistic. 482007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=49http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=49492007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=50http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=50Vestas installs a new wind turbine every ve hours. Globally. vestas. com If the world ever runs out of wind, its probably our fault 70927Run Out430x270. indd12007071059382007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=51http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=5170927Run Out430x270. indd12007071059382007-08-20T17:03:31+02:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=52http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/UK907/?Page=52Vestas Contacts Vestas Northern Europe 45 97 30 00 00 Sales and service in the UK, Ireland, Scandinavia, Poland and the Baltic area. Vestas Central Europe 49 4841 9710 Sales and service in Germany, Austria, Benelux, Russia and Eastern Europe. Vestas Mediterranean 34 902 41 98 00 Sales and service in the countries of the Mediterranean region, the Middle East, Latin America, the Caribbean, and North and West Africa. Vestas Asia Paci c 65 6303 6500 Sales and service in Australia, New Zealand, China, Japan, India and the rest of Asia. Vestas Americas 1 503 327 2000 Sales and service in North America. Vestas Offshore 45 97 30 00 00 Sales and service, offshore. For more information about Vestas sales and service units, go to www. vestas. com and click on Find your local Vestas of ce. Vestas Wind Systems AS Alsvej 21 DK8900 Randers Denmark Tel. 45 97 30 00 00 Fax 45 97 30 00 01 vestasvestas. com www. vestas. com EDITORS Peter Wenzel Kruse Editor in Chief and Hanne Poder Sørensen. TEXT Klaus Bundgård, Charles Butcher, Cath Mersh, Peter Gisselmann Rasmussen, Lisbeth Christensen and Hanne Poder Sørensen. UKWind WIND, OIL AND GAS2007-08-20T17:03:31+02:00