Siemens Energy aims to resume troubled wind turbine sales


(Image: Siemens Gamesa's website)

German energy giant Siemens Energy is gearing up for a comeback. Spanish state energy giant Repsol SA and German renewable energy developer BayWa r.e. have both indicated that Siemens' turbines are set to resume supply, attempting to shake off the crisis of quality problems from last year.

According to Bloomberg, Joao Costeira, executive managing director at Repsol SA, said "they will be back, and they’ll be a good supplier" at a wind energy forum in Bilbao. He expects Siemens Energy to provide clarity on the matter within a few months.

Juergen Maier, director of wind turbine procurement in BayWa r.e., also mentioned that their interaction with Siemens Energy is normal, and they have learned that the company will soon restart selling of the 5.X turbines.

Siemens Energy recognized that turbines’ main components are degrading faster than expected, leading to risks for other components. This not only severely impacted the performance of the wind power division but also incurred repair expenses of up to 1 billion euros (about 1 billion USD). Ultimately, Siemens Energy sought support from the German government to provide a 15 billion Euro (about 16.4 billion USD) to stabilize its financial situation.

Bloomberg quoted people familiar with this matter stated that Siemens Energy executives have indicated that, with the efforts of engineers and suppliers, they have adjusted the wind turbine design and parts production process. They are expected to resume sales in the third quarter of 2024.

In response to this, Siemens Energy spokesperson stated that the launch date of the revised versions of the onshore turbines 4.X and 5.X has not been confirmed, and all current information is speculative. Market analysts suggest that amid rising raw material and transportation costs, as well as supply chain bottlenecks, the return of these turbines indicates Siemens Energy's confidence in the product.

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