Corporate News: Vestas Wind Systems Expands Global Order Book with Significant New Wind Projects
Vestas Wind Systems has announced a suite of new wind turbine orders that will substantially increase its 2025‑year‑end intake. The Danish manufacturer secured contracts in both onshore and offshore segments across several key markets, reinforcing its status as a leading supplier of wind technology and services.
Onshore Orders
| Region | Project | Capacity | Turbine Model | Service Agreement |
|---|---|---|---|---|
| South Korea | Gokseong Green Wind Power Project | 43 MW | Seven 6.2‑MW V162 | 20‑year |
| Italy | Edison contract | 102 MW (final capacity pending) | Mix of V150 and V136 | 20‑year |
| Mediterranean (Italy, Spain, Portugal) | Various | 289 MW | V162, V150 | 20‑year |
| Ireland | Multiple projects | 188 MW (incl. 99 MW sub‑deal) | V162 | 20‑year |
These onshore deals bring Vestas’s total 2025 intake to over 1.2 GW. The projects span a mix of turbine sizes, reflecting the company’s ability to tailor solutions to site-specific wind regimes and grid constraints.
Offshore Order
South Korea’s Shinan‑Ui project represents Vestas’s first offshore contract in the country. The 390 MW order will involve the delivery of 15 V174 turbines (or equivalent) and will commence operations in 2028. This entry into the Korean offshore market opens new avenues for Vestas in a region where demand for offshore wind is accelerating under national decarbonisation targets.
Market Context
- Supply‑Demand Fundamentals
- Global wind turbine demand has risen sharply as utilities accelerate renewable commitments. Vestas’s order book growth aligns with a projected 4–5 % annual increase in onshore wind installations, while offshore growth is expected to outpace onshore at 12–15 % annually.
- The company’s 20‑year service contracts enhance revenue stability, countering the cyclical nature of turbine sales.
- Technological Innovations
- V162 and V174 turbines incorporate advanced blade aerodynamics, variable‑speed gearboxes, and digital condition‑monitoring systems that reduce maintenance costs and extend asset lifespan.
- The integration of battery storage solutions is being explored for future contracts, addressing grid variability and enhancing dispatchability.
- Regulatory Impacts
- In South Korea, the government’s 2030 renewable portfolio standard (RPS) mandates a 30 % renewable share of total generation, creating a favorable environment for the Gokseong and Shinan‑Ui projects.
- European regulators are tightening emissions standards, and the European Green Deal’s net‑zero targets are driving demand for high‑capacity onshore turbines, as evidenced by the Italian and Mediterranean contracts.
- Commodity Price Analysis
- The recent rise in steel and copper prices has increased turbine component costs by approximately 7 %. Vestas has mitigated this through long‑term supplier agreements and bulk procurement for the 2025 order book.
- Oil prices influence the comparative economics of wind versus conventional power, indirectly supporting the attractiveness of renewable projects in both emerging and established markets.
- Infrastructure Developments
- The delivery schedules for 2027–2028 coincide with planned grid upgrades in South Korea, ensuring adequate transmission capacity for the new offshore installations.
- In Italy and the Mediterranean, new sub‑station construction and grid interconnectors are being upgraded to accommodate higher wind capacities.
Balancing Short‑Term Trading and Long‑Term Transition
While the immediate focus is on securing the 2025 order pipeline, Vestas’s strategic positioning underscores a longer‑term energy transition narrative. The company’s ability to deliver both onshore and offshore solutions across diverse markets positions it to benefit from:
- Short‑Term Trading – Revenue from the 20‑year service contracts and component sales provides a steady cash flow that can offset market volatility in turbine prices.
- Long‑Term Energy Transition – The expanding renewable portfolio, coupled with technological advancements, aligns Vestas with the global decarbonisation trajectory and positions it for future growth in emerging markets.
In summary, Vestas Wind Systems has reinforced its market leadership through a diversified portfolio of new wind projects, strategically timed to capitalize on regulatory support, technological progress, and stable supply‑chain dynamics. The company’s expanded order book reflects a balanced approach to short‑term financial performance while maintaining a forward‑looking stance on the renewable energy transition.
