June 10, 2012 / 7:03 PM / 8 years ago

Vestas CEO: US market likely to drop 80 pct in 2013

COPENHAGEN, June 10 (Reuters) - The head of the world’s biggest wind turbine maker, Vestas, said on Sunday that the U.S. wind turbine market is likely to fall by 80 percent next year because of the expected expiry of an important tax credit.

The U.S. production tax credit (PTC) for renewable energy investment is due to expire at the end of this year, and, in an election year, it is widely believed that Congress will not pass legislation to renew it before the expiry.

“In the United States, the market this year is very, very busy,” Vestas Chief Executive Ditlev Engel told a gathering of EU European affairs ministers and other senior officials at Vestas’ research and development centre.

“But because of the potential lapse of the regulatory framework in the U.S., this market will probably go down 80 percent next year,” he said.

That view of the potential for a steep drop was in line with analysts’ estimates cited earlier by Vestas, including in material provided to shareholders before the annual general meeting in March.

But Engel’s remarks made it clearer than ever that the company now also sees that as the likely scenario.

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