Page 9 - AsiaElec Week 32

AsiaElec RENEWABLES AsiaElec

Vestas green targets in line with Paris goals

GLOBAL VESTAS is the first renewables OEM to have its Vestas said that it was introducing a range of
greenhouse gas (GHG) reduction targets fully measures to reduce emissions. Company cars are
endorsed as meeting the Paris Agreement’s 1.5°C gradually being replaced with more sustainable
goal. alternatives. Close to 100 green service vehicles
The company said that the Science Based are now in operation, signalling Vestas’ first step
Targets Initiative (SBTI) had validated its targets within direct operations toward its 2030 goal.
and confirmed them to be in line with the levels To reduce supply chain emissions, Vestas has
required to keep global warming to 1.5°C above already established partnerships with several
pre-industrial temperatures. suppliers, including DSV, to improve its emis-
Vestas said in January 2020 that it aimed to sion reductions within transport and turbine
become carbon neutral, without the use of off- manufacture.
sets, by 2030. “By setting targets that are grounded in cli-
Vestas aims to reduce emissions from its mate science, Vestas is positioning themselves
direct operations, classed as scope 1 and 2 emis- as leaders in their sector and setting themselves
sions, by 100% by 2030, using 2019 as the base up for success in the transition to a net-zero
year. economy,” said Cynthia Cummis, director of
The company also aims to reduce its scope 3 Private Sector Climate Mitigation at the World
emissions, which are emissions from its supply Resources Institute, one of the Science Based
network, by 45% per MWh generated, by 2030. Targets Initiative partners.
The SBTI also validated this goal, noting that it The announcement comes as Vestas said it
was ambitious. now had 100 GW of turbine capacity in service.
“At Vestas, we are proud to reach this mile- The company now services 47,000 wind tur-
stone with SBTI. Becoming carbon neutral bines, including multibrand, in 69 countries.
by 2030 is a key element within Vestas’ goal of “Vestas has led the energy transition for the
becoming the global leader in sustainable energy past four decades. Our current portfolio of 115
solutions”, said Henrik Andersen, CEO and pres- GW installations and 100 GW [in] service shows
ident of Vestas. how far Vestas and wind energy has come,” said
“With several nations and global businesses Andersen.
outlining intentions for a green economic recov- The company said that the 100 GW of turbine
ery from [coronavirus] COVID-19, the renewa- avoid 134mn tonnes per year (tpy) of CO2 being
bles industry is set to become a more dominant produced.™
resource in the global energy mix,” he noted.

Investment in Chinese solar and wind

booms ahead of subsidy deadline

CHINA INVESTMENT in wind and solar in China is feed-in tariffs (FiTs) that were approved before
likely to continue booming in 2020, Fitch Rating 2020, offering subsidies of CNY0.35-0.45 ($0.05-
said, driven by looming connection deadlines to 0.06) per kWh.
secure wind subsidies. After this deadline, subsidies will be lower,
China’s wind power investment climbed by and provincial governments will take over the
152% year on year in the first half of 2020, the role of setting and dishing out subsidies. After
agency said, accounting for almost half of total 2021, this may create uncertainty and is now
generation investment, a new record. encouraging gencos to speed up construction.
While private investment drove offshore and Fitch also observed that while offshore wind
onshore wind, state-owned generating compa- is seeing a rush to build, onshore wind installa-
nies (gencos) are set push forward greenfield tions are slowing, dropping by 20% in the second
solar development as they diversify their fuel quarter of 2020. When subsidies end in 2021,
mix. there will be more of an investment slowdown.
Looking forward, Fitch expects capex for off- However, this could free up some space in
shore wind, which saw installations increase by the supply chain for the turbine manufacturers,
165% in the first half of the year, to remain high which have seen restrictions on industrial capac-
until the end of 2021. ity during the coronavirus (COVID-19) crisis.
This is the crucial deadline to lock in higher This new breathing space could drive down unit

Week 32 12•August•2020 www. NEWSBASE .com P9