'China’s running laps around us': Orsted CEO’s call for action on electrification
Orsted CEO calls for Europe to speed up grids rollout, get rid of barriers to electrification and commit to de-risking wind power projects
The CEO of Danish renewables giant Orsted warned that China is pulling away from Europe on electrification at the opening of the WindEurope conference in Copenhagen.
Speaking at the opening of WindEurope’s annual event today, Orsted’s recently appointed CEO Rasmus Errboe said that, “right now, with the challenges Europe faces, it is more important than ever that we come together to find solutions and commit to concrete actions.”
The WindEurope annual event “brings together the best in our industry” in terms of collaboration and innovation, he said. “And perhaps most of all, it also enables conversations and the ability to connect the dots.”
“We have been here before. We have talked about many of these things before. We have put dots on the wall before. Now we really, truly need to get it done.”
“Our industry has a lot to offer,” he said. “Wind is 20% of the electricity Europe consumes. It is cheaper than fossil fuel alternatives.”
“It is critical for Europe's energy security, our resilience, our competitiveness. Our industry remains a European success story. 370,000 jobs rising to 600,000.”
The European supply chain is “ramping up to meet the need” but Errboe warned the “reality is that we are not building even remotely enough new factories and new wind farms to support the competitiveness and energy security goals that we have already set for ourselves.”
“We are lagging behind badly on grid expansion,” he said. “And to be frank, China is doing laps around us on electrification.”
“So we need to embrace the urgency and work together in the industry,” he said. Specifically, we should do three things.”
“We don't need new legislation," said Errboe. "Just do what Europe has already collectively agreed to. And let's make sure that good projects get grid connected and not stopped.”
“Secondly, let's get rid of barriers for electrification.” Finally, he said a commitment must be made to “de-risk the wind investment, in particular within offshore wind.” Errboe called for a predictable pipeline of two-sided Contracts for Difference – as are used in the UK.
“That's essential to move projects forward with the speed and resilience required. And it will help the entire economy,” he said. “This is our collective call to action.”
(Copyright)