Big Wind to governments: ‘We’re gonna need a bigger trough’. So much for cheap renewable energy, a stale myth if ever there was one, given the endless subsidies. How much is too much in climate obsession circles? Net zero targets have created a captive market for suppliers.
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The German government is preparing to provide financial support to Siemens Energy’s struggling wind turbine division amid a broader crisis in the wind and solar industries, reports OilPrice.com.
-> Siemens Energy, facing significant losses, is in talks for up to 15 billion euros in guarantees, with the German state covering 80% of the initial funding.
-> Siemens AG shares have plummeted over 70% since mid-June, with the company abandoning its 2023 profit outlook due to challenges in its wind turbine unit.
-> The UK government is set to offer higher subsidies for offshore wind projects, following a previous auction where developers backed out due to low pricing, indicating growing financial strains in the renewable energy sector.
Reuters reports the German government, Siemens AG, and other parties will provide billions of euros in project-related guarantees to support Siemens AG’s struggling wind turbine division. This financial assistance comes just weeks after the company warned about mounting losses amid a meltdown across wind and solar industries.
Three people familiar with the talks said that Siemens Energy’s top shareholder, Siemens AG, with a 25.1% stake, is prepared to provide some guarantees. Details are still scant, and nothing has been decided, as an agreement needs to be formally drawn up and supported by all stakeholders.
Last month, Reuters said Siemens Energy was discussing state guarantees with the German government.
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A Siemens AG spokesperson said the company remained in “very constructive talks to define the best possible solution in the interests of all parties involved.”
Siemens Energy shares in Germany have crashed more than 70% since mid-June as it has abandoned its 2023 profit outlook after a review of its wind turbine unit revealed a billion euro problem. Shares were up 5% on Reuters’ report today [Nov 10, 2023].
Full report here.
via Tallbloke’s Talkshop
November 11, 2023 at 01:03PM
Iowa Climate Science Education 