For investors who seek long-term low-risk investments, the 20 year lifespan of an onshore wind farm is an attractive prospect
Four years ago, Danish wind turbine manufacturer Vestas was on the brink of bankruptcy. The company famous for sending in the bailiffs to evict employees occupying their Isle of Wight site, axed more than 3,700 jobs. Relations were in turmoil as the chair, deputy chair, chief financial officer and deputy chief executive left in quick succession. The CEO himself followed one year later as net losses escalated sevenfold to £53m.
Fast forward to 2016 and the world’s biggest turbine manufacturer is reporting historic successes, including a record €685m (£530m) net profit last year and a 22% increase on revenue to €8.4bn (£6.5bn). It also recently announced it had been awarded a contract to supply turbines for Europe’s largest ever onshore wind project in Norway.
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It is probably as safe to invest in a wind farm in the US as it is to invest in a road