Saturday, December 1, 2012

Taxpayers to bail out yet another alternative energy company

Alternative energy development has taken another hit as the world’s largest developer of wind turbines, Denmark-based Vestas Wind Systems, trimmed its U.S. workforce by approximately 20 percent. Vestas says the reason for the layoffs is lagging revenues and the uncertain future of federal subsidies.

The company reported a 93 percent drop in its stock price during the past three years. Despite this failure, company officials say they expect to continue operations in the United States for years to come. The recent reelection of President Obama, who has championed taxpayer subsidies for alternative energy companies, gives failing alternative-energy companies like Vestas a glimmer of hope.

“Vestas is pleased the American public reelected many wind energy supporters, which includes both Republicans and Democrats,” said Andrew Longeteig, a communications specialist for Global MarCom & Corporate Relations, the firm that represents Vestas. “It’s a favorable step toward securing an extension of the Production Tax Credit. Vestas is confident the PTC will be extended because it has strong bipartisan support.

“Vestas is optimistic about the long-term future of wind power and intends to be in the U.S. market for a long time,” Longeteig added.

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