New tailwind for small wind turbines

2/10/2014

For months, the market for small wind turbines has been stalled while the EU has been dealing with the issue of the Danish PSO tax. Now the agreement has finally been reached, removing the biggest barrier to investing in a small wind turbine.

The market for 25 kW small wind turbines was just about to take off when the EU in the spring of 2014 put a spanner in the works and questioned the legality of the Danish PSO tax, which is intended to support the expansion of green energy.

As a result, the economic foundation that formed the basis for the many people who had shown interest in investing in their own wind turbine disappeared. Now that the agreement is finally in place, the economics of a small wind turbine are once again reasonable, and this will surely re-establish the desire to invest in many rural properties.

It is also extremely good news for HS Wind in Randers. Here, the news has also been eagerly awaited because the uncertainty that has followed the EU's handling of the case has put the market for 25 kW small wind turbines completely on standby.

The company is now preparing for a busy sales and production schedule. This is a challenge because the long market downtime has meant that inventory has been reduced to a minimum and subcontractors have done the same. Now, CEO of HS Wind, Ulrich Høgenhaven, hopes that subcontractors can pick up the same pace as last fall to keep up with the backlog of inquiries that the EU case has built up.

At the same time, he encourages customers to act quickly because he doesn't see the deal as particularly long-term. Quite the contrary.

"Our perception of the agreement is that it is short-lived. The reports we have from the politicians indicate that the 2.5 MW pool that was allocated has already been exhausted. We hope for a similar and more long-term agreement for the 25kW turbines, preferably until 2020. This will give both the owners of small wind turbines and us as manufacturers a stable financial basis to work with," he says.

For the fast ones, however, this shouldn't be a problem. "We have many agreements with customers who have simply been waiting for the EU and the government to agree. We are in the process of contacting them now, and if they choose to sign a supply agreement while the current PSO agreement applies, that will be the one that applies. We may not be able to install all the turbines we sell this year, but the agreement will still apply from the time it is signed," he concludes.

HS Wind has developed a three-bladed small wind turbine that looks like a mini version of the big ones. This results in a very stable and extremely durable turbine with an expected lifespan of at least 20 years. Optimally set up, a wind turbine from HS Wind can deliver up to 100,000 green kWh per year.

By the way, you can meet HS Wind at the upcoming AGROMEK agricultural fair in Herning, where you can get more info about the rules and economics of small wind turbines.

New tailwind for small wind turbines

For months, the market for small wind turbines has been stalled while the EU has been dealing with the issue of the Danish PSO tax. Now the agreement has finally been reached, removing the biggest barrier to investing in a small wind turbine.

The market for 25 kW small wind turbines was just about to take off when the EU in the spring of 2014 put a spanner in the works and questioned the legality of the Danish PSO tax, which is intended to support the expansion of green energy.

As a result, the economic foundation that formed the basis for the many people who had shown interest in investing in their own wind turbine disappeared. Now that the agreement is finally in place, the economics of a small wind turbine are once again reasonable, and this will surely re-establish the desire to invest in many rural properties.

It is also extremely good news for HS Wind in Randers. Here, the news has also been eagerly awaited because the uncertainty that has followed the EU's handling of the case has put the market for 25 kW small wind turbines completely on standby.

The company is now preparing for a busy sales and production schedule. This is a challenge because the long market downtime has meant that inventory has been reduced to a minimum and subcontractors have done the same. Now, CEO of HS Wind, Ulrich Høgenhaven, hopes that subcontractors can pick up the same pace as last fall to keep up with the backlog of inquiries that the EU case has built up.

At the same time, he encourages customers to act quickly because he doesn't see the deal as particularly long-term. Quite the contrary.

"Our perception of the agreement is that it is short-lived. The reports we have from the politicians indicate that the 2.5 MW pool that was allocated has already been exhausted. We hope for a similar and more long-term agreement for the 25kW turbines, preferably until 2020. This will give both the owners of small wind turbines and us as manufacturers a stable financial basis to work with," he says.

For the fast ones, however, this shouldn't be a problem. "We have many agreements with customers who have simply been waiting for the EU and the government to agree. We are in the process of contacting them now, and if they choose to sign a supply agreement while the current PSO agreement applies, that will be the one that applies. We may not be able to install all the turbines we sell this year, but the agreement will still apply from the time it is signed," he concludes.

HS Wind has developed a three-bladed small wind turbine that looks like a mini version of the big ones. This results in a very stable and extremely durable turbine with an expected lifespan of at least 20 years. Optimally set up, a wind turbine from HS Wind can deliver up to 100,000 green kWh per year.

By the way, you can meet HS Wind at the upcoming AGROMEK agricultural fair in Herning, where you can get more info about the rules and economics of small wind turbines.

Contact us

If you'd like to hear more about whether a Viking VS turbine could be the right choice for you, please don't hesitate to contact us. We are always ready with guidance and advice - whether you already own a small wind turbine or are thinking of investing in one.