The world’s three largest %WindEnergy companies have issued disappointing financial results and offered a grim outlook for the industry over the coming year.
Electricity generated from wind turbines continues to face headwinds that include project delays, equipment problems, inflation, and high interest rates.
Consequently, German industrial conglomerate %SiemensEnergy (OTC: SMNEY), the world’s largest maker of offshore wind turbines, said that it expects a 2024 loss of $2.2 billion U.S.
Siemens said that its wind division, called “Siemens Gamesa,” continues to struggle with quality problems and financial issues.
At the same time, Denmark’s Vestas (VWS), the world’s top maker of wind turbines, has suspended its dividend payment to shareholders and warned that ongoing challenges will continue to weigh on the sector throughout 2024.
Those challenges also include rising prices for raw materials and components, as well as regulatory delays of major wind projects in countries around the world.
Lastly, Orsted (ORSTED), another Danish company and the world’s biggest offshore wind project developer, announced a portfolio review and job cuts following a major write down of its U.S.-based infrastructure projects.
Orsted said that it plans to slash its fixed costs by $144 million U.S. by 2026, including as many as 800 jobs globally due to delayed wind energy projects.
Siemens said that the world is currently on track to increase global wind energy capacity two-and-a-half-fold by 2030, below the three-fold target agreed to at last year’s COP28 climate summit held in Dubai.