Siemens Gamesa's operating chief, Tim Dawidowsky, emphasized the need for direct financial support for major Western wind turbine manufacturers to facilitate investments necessary for decarbonization efforts. Dawidowsky addressed this challenge during an energy conference organized by Esade in Madrid, stating that despite the significant investment required to grow, turbine manufacturers like Siemens Gamesa often face cash flow constraints.
Dawidowsky highlighted the crucial role of wind energy in the transition to cleaner sources, but expressed concern that the primary players in the value chain responsible for supplying the smaller turbines necessary for this transition are suffering substantial financial losses, despite the support received from the European Union and other global entities.
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Comparing public support mechanisms, Dawidowsky pointed out one advantage of the U.S. Inflation Reduction Act (IRA) over European subsidies. He noted that the IRA offers immediate cash benefits in return for job creation, enabling the construction of cash-neutral manufacturing plants in the United States, which he considered impossible in Europe.
Siemens Gamesa has faced challenges in recent years, including loss-making legacy contracts, supply chain issues, and difficulties in scaling up its offshore operations. In the quarter ending March 31, the company reported a loss of €374 million ($412 million), as indicated by Siemens Energy's financial results.
Dawidowsky warned that if wind turbine manufacturers continue to face financial hardships, there is a risk of reducing market capacity to the extent that turbines become luxury goods, ultimately driving up prices. The industry is in need of measures to ensure a sustainable and affordable transition to renewable energy.
