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.
. . .
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.
Tallbloke's Talkshop 
Good money after bad…
whose money is it anyway?
These businesses have been given every advantage, large subsidies and prices above market yet still need help. And still the fanatics insist they are cheaper.
Is it any wonder prices are going up and ‘bailouts’ demanded?
Siemens Energy books $2.4 billion in charges on wind turbines
August 7, 2023
The charges will inflate Siemens Energy’s net loss more than six-fold in 2023 to 4.5 billion euros, the company said, as it published third-quarter results showing a record order backlog of 106 billion euros due to strong demand.
https://www.reuters.com/business/energy/siemens-energy-books-24-bln-charges-wind-turbine-issues-2023-08-07/
“…the German government…will provide billions of euros in project-related guarantees to support Siemens AG’s struggling wind turbine division.”
Try, people, to remember what Mrs. Thatcher tried so hard to teach us: “Governments have no money of their own”.
Peter MacFarlane; Try, people, to remember what Mrs. Thatcher tried so hard to teach us: “Governments have no money of their own”.
I missed that one from her, but how VERY true. I wish MP’s might have that branded into their brains, perhaps we might have avoided many scandals such as financing todays’ net zero alarmists.
The other good lesson Thatcher taught us when asked if she would instigate a Referendum to leave the EU, was “I would never trust the general public to make such a major vote, as they cannot be in possession of any substantial facts to inform them about such a complex subject”. At least, that was the gist of it.
Do not assume I am a Thatcher fan whatsoever. Her experience of running a business herself was in her parents general store in Grantham, where she became convinced that all large organisation could and should be split down as far as possible into autonomous units – all those units becoming unprofitable should be jettisoned. Once in power, this process was initiated – the unprofitable became ripe for sale to private or overseas investors and this was prevalent in the public utilities. We have reaped (and raped) what we sowed.
The good old sunk cost fallacy rears its ugly head again, Peter.
It will end in tears as usual, some people never learn
EU policy on…
State aid
A company that receives government support gains an advantage over its competitors. Therefore the Treaty generally prohibits State aid unless it is justified by reasons of general economic development. To ensure that this prohibition is respected and exemptions are applied equally across the European Union, the European Commission is in charge of ensuring that State aid complies with EU rules
https://competition-policy.ec.europa.eu/state-aid_en