Munich-based Siemens Energy AG is embarking on a quest to develop a novel turbine, aiming to address significant financial losses that have plagued its wind energy division. The beleaguered unit, struggling with malfunctioning turbines and unprofitable contracts, has prompted the company to consider a fresh approach in its bid to revamp the sector.
Insiders with knowledge of the situation have revealed that Siemens Energy is actively exploring the possibility of introducing a new turbine, with the potential of seeing it come to fruition within two years. Simultaneously, the company's Gamesa unit, also in distress, is contemplating the rescue of its latest turbine, the 5.X, by transitioning to a new model. This shift, however, entails a considerable cost, as well as a temporary absence from the market.
The industrial behemoth, Siemens Energy, finds itself in the throes of a major industrial crisis, with mounting problems stemming from faulty turbines and unprofitable contracts, resulting in an anticipated net loss of €4.5 billion ($4.8 billion) for the current year. This setback has cast a long shadow over the company's efforts to turn around its Spanish onshore wind unit, which has remained in the red for several years.
While Siemens Energy has remained tight-lipped about specific plans for new turbine designs, it is reported to be in the midst of assessing multiple options to curtail costs. These measures include potential closures of factories and sales offices. The company is also in the process of gauging the extent of necessary repairs for the beleaguered 5.X turbine, which has grappled with a spate of breakdowns.
The entire wind energy sector grapples with challenges arising from unprofitable contracts and mounting raw material costs. Siemens Energy is slated to unveil its comprehensive plans on November 15, with the finalization of repairs for the 5.X turbine potentially extending until year-end. In the midst of these tumultuous times, the company is determined to navigate the storm and emerge with a sustainable strategy for its wind energy endeavors.
