Vestas Sees ‘Significant’ Market Growth in Africa, East Europe
“Ninety percent of the growth of energy consumption in the next 25 years will happen in emerging markets,” Chief Sales Officer Juan Araluce said today in a telephone interview, citing the International Energy Agency. “It makes a lot of sense to sell our products into countries where they need that power, and are currently paying higher prices.”
The shifting patterns of demand means the proportion of Aarhus, Denmark-based Vestas’s orders from emerging markets has risen to almost 60 percent this year from 42 percent last year, Araluce said. Orders have been logged so far in Chile, Uruguay, Mexico, South Africa, Croatia, Romania and Ukraine.
“We will see the sector start to grow significantly in Morocco, Egypt, Kenya, Namibia, Mozambique and all the eastern European countries and former Soviet Republics,” Araluce said.
That market expansion is correlated with economic growth in those countries, according to Araluce. Many more established markets face growing regulatory uncertainty, he said, citing announcements from different German political parties facing elections in September, rule changes in the U.K. and stalled markets in economic crisis-stricken Spain, Portugal and Greece.
“Mature markets will continue being important and still play a significant role,” Araluce said.“However they are standing still or declining, particularly in Europe.”
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