Big money is more available now than it was in mid 2009. But capital remains the bottleneck for large scale solar and wind farms around the world and the spigot may not open until late this year.
Vestas Wind Systems latest 3 MW wind turbine went into operation early this year
Banks continue to be cautious about lending to any but the most experienced alternative energy companies. Deals take longer to negotiate, and documentation is much greater than before the credit crisis.
The impact is that many projects may not kick off until late this year, slowing the growth of the industry in this key recovery year. This likelihood showed itself in projections Wednesday from Vestas Wind Systems, the world’s largest maker of wind turbines.
Vestas offered a restrained growth outlook for 2010. It said orders would come to between 8,000 and 9,000 MW of turbines, up 177 percent from the deep pull back it saw in 2009, but a less robust 41 percent higher than the more normal sales period in 2008.
The reason the Danish company said in a financial report is the delay in financing. “It is only now at the beginning of 2010 that the market for bank funding truly appears to be approaching a normal trend, although the banks are now far more critical and require much more documentation than they did previously,” the company wrote.
From a management perspective, the company complained it would have excess capacity at least in the early part of the year. This is only adding to the fierce level of competition rising in the market.
“The far majority of revenue and, especially, profit will be generated in the second half of 2010,” Vestas said.
On a separate note, the company said it first massive 3 MW V112 turbine was installed at the start of the year. The product will help drive 2010 sales.
Posted by Mark Boslet 
