Vestas Wind Power CEO Urges EU To Sharpen Its “Fragmented” Energy Policy

Henrik Andersen, CEO of Danish wind turbine giant Vestas Wind Systems A/S, has issued a stark warning to European policymakers: without stronger and more cohesive industrial strategies, Europe may lose its edge in renewable energy manufacturing to the U.S. and other regions.

“Wind is largely a European creation — born in our universities, tested on our sites,” Andersen told Bloomberg News. “If we don’t protect and support what we’ve built, companies like ours will eventually move out of Europe. It’s that simple.”

Andersen’s remarks come amid growing concerns over Europe’s competitiveness, weak economic growth, and its ability to meet carbon reduction goals. These challenges were spotlighted in a 2023 report by former Italian Prime Minister Mario Draghi. Geopolitical tensions — such as Iran’s recent threat to block the Strait of Hormuz, and ongoing instability from the war in Ukraine — have also underscored the urgency of achieving energy independence.

“When you’re self-sufficient, energy prices fall. So if Europe wants any of this, then energy and industrial policy need to be very closely linked,” Andersen emphasized. “We need an industrial policy that allows European companies to be both global and big.”

Bloomberg writes that despite its leadership in wind technology, Europe’s fragmented regulatory landscape, high inflation, rising interest rates, and supply chain issues have created headwinds for companies like Vestas. Competition from Chinese turbine manufacturers — including recent deals in Germany — has added to the pressure, although some of these arrangements face scrutiny on national security grounds.

Andersen criticized the EU’s long-standing aversion to industrial consolidation, arguing it has left European companies at a disadvantage globally. “For decades, we’ve said no to mergers and consolidation in the name of competition,” he said. “Now it’s that very fragmentation that’s making Europe uncompetitive.”

He pointed to U.S. policy as a model for Europe, citing the American approach to energy independence and industrial scale. Even with political threats to renewable subsidies, Andersen acknowledged the U.S. has followed through on consistent long-term strategy.

“I’m going to be a little bold and say it: Europe should look at what the US has done,” he said. “Over the past decades, America has built a level of energy independence that now allows them to export energy to Europe. That didn’t happen overnight. It took two or three decades of consistent policy, but it shows that it can be done.”

Vestas, headquartered in Aarhus, Denmark, has installed over 56,000 turbines in 71 countries since its founding in 1979. Recently, the company has significantly expanded in the U.S., doubling its American workforce to over 5,000 in the past three years. Its U.S. factories are currently running at full capacity to meet demand.

“We’re not afraid to invest in the US,” Andersen said. “And we don’t expect any administration — current or future — to de-prioritize energy. In fact, we’re confident they’ll keep pushing forward.”