Wind Power Developers Downplay Impact of Siemens Gamesa Turbine Issues

Leading wind power developers, including Iberdrola, RWE, EDP Renovaveis, and Orsted, are downplaying the potential impact of issues with Siemens Gamesa's onshore wind turbines. Last week, Siemens Energy, the parent company of Siemens Gamesa, revealed that problems with its recent onshore platforms could affect up to 15 to 30% of its installed turbines worldwide, resulting in a 37% decline in its share price. The company estimated that resolving flaws in rotor blades and bearings, which range from small cracks to component failures, could cost over 1 billion euros ($1.1 billion) and take years to address. UBS analysts warned that in a worst-case scenario, charges for Siemens Energy could exceed 5 billion euros. However, major wind power developers have expressed confidence in their respective portfolios and downplayed the significance of the turbine problems. Portugal's EDP Renovaveis stated that, to its knowledge, the issues highlighted by Siemens Gamesa pertain to the company's two most recent onshore platforms, the 4.X and 5.X models. EDP Renovaveis added that it has only a limited number of 4.X turbines and no 5.X turbines in its portfolio, affirming that Siemens Gamesa performs similarly to other suppliers in their diversified manufacturer portfolio. German company RWE, a longstanding customer of Siemens Gamesa, confirmed that it has not encountered any "unusual technical issues" with its existing wind power portfolio. Similarly, French utility EDF expressed confidence in its ability to address any issues that may arise. Denmark's Orsted, which operates one onshore wind farm with Siemens Energy turbines, emphasized the high availability rates of its turbine portfolio, suggesting minimal downtime for wind power operations. Swedish wind farm developer Eolus Vind stated that the technical issues experienced with Siemens Gamesa turbines are no more frequent than those encountered with other manufacturers, and the company continues to receive components for new projects as scheduled. Iberdrola, a major Spanish energy company, plans to conduct a thorough analysis before installing 11 units of Siemens Gamesa's troubled flagship 5.X model in a Spanish onshore wind farm. According to a source within the company, Siemens Gamesa has informed Iberdrola about proceeding with a retrofit design, and no technical issues have been observed with the remaining fleet of Siemens Gamesa turbines. A spokesperson for Iberdrola confirmed this information. Siemens Energy declined to comment on the matter. Copenhagen Infrastructure Partners, although not directly impacted by the mentioned turbine issues, expressed interest in collaborating with Siemens Gamesa to mitigate any potential impact on its development portfolio. Following the sell-off on Friday, Siemens Energy's shares rebounded, closing up 6.7% on Wednesday, as analysts believed the previous sell-off had been exaggerated. Siemens Gamesa initially disclosed problems with its 5.X model in July 2021, citing higher-than-expected ramp-up costs. Issues with the model, which has sold over 5 gigawatts globally, include manufacturing delays, increased material costs, and transportation expenses. Siemens Energy also mentioned separate challenges with offshore turbines, such as construction delays at production sites and supply chain issues. Many wind developers have already experienced project delays due to component shortages and rising costs. Polish energy company PGE assured that it does not foresee any risks regarding timely deliveries of Siemens Gamesa turbines for the Baltica 2 offshore wind project in the Baltic Sea, which is scheduled for commissioning in 2027.

Monthly Plan

Annual Plan

Eolus Vind and Other Wind Farm Developers Address Concerns Surrounding Siemens Gamesa Turbines

Vattenfall Completes Installation of Final Turbine in Hollandse Kust Zuid Offshore Wind Farm

Siemens Gamesa to Supply Turbines for 300MW Offshore Wind Farm in Collaboration with Hofor

FairWind Awarded Turnkey Pre-Assembly Contract for Vesterhav Nord and Syd Offshore Wind Farms in Denmark

Ørsted Calls for Competition for Baltica 2 Offshore Wind Farm in Poland

Salzgitter and Iberdrola Sign Offshore Wind Power Purchase Agreement to Drive Sustainable Steel Production

Simply Blue Secures Strategic Investment from Kansai Electric to Expand Offshore Wind Portfolio

Topsoe Opens Europe’s Largest Solid Oxide Electrolyser Manufacturing Plant in Denmark

R.Power Begins Construction of 55MW Solar Park in Romania

Fugro Q3 EBITDA Falls Amid Offshore Wind Weakness and Oil, Gas Delays

Peel Ports Pledges Additional £10 Million Investment at Great Yarmouth Site

News

Region

Friends

EnergyMagz