Vestas Wind Systems A/S (CPH:VWS) considers building a wind turbine factory in the UK following the British government’s recent decision to raise support prices in the country’s upcoming Contracts for Difference (CfD) auction, Bloomberg reports.
The project rekindles the Danish manufacturer’s intentions to expand its operations in the UK where it owns a production facility for wind turbine blades on the Isle of Wight. The company’s CEO Henrik Andersen has told the news agency that talks are ongoing for a site close to a large harbour that offers immediate access to the sea, adding that this “could very well be in Scotland.”
Last week, the British government increased the maximum price for offshore wind projects in the sixth CfD allocation round by 66% from the previous tender edition due to the latest round’s failure to contract any offshore capacity. The maximum strike price for offshore wind in the round that will open in March 2024 will be GBP 73 (USD 91/EUR 84) per MWh.
According to Vestas’ CEO, the Danish group needs a UK production facility located closer to a bigger harbour. However, the contemplated expansion plan is contingent on demand and the potential volume of orders it would receive.