Issues with Wind Turbine Quality Could Cause Siemens Gamesa to Lose Billions

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Siemens Energy has announced that significant quality issues within its wind turbine division will result in a cost of approximately 2.2 billion euros ($2.4 billion).

These challenges are expected to lead to a net loss of around 4.5 billion euros ($4.9 billion) for the year, according to the company’s third-quarter earnings report released on August 7.

Siemens Gamesa, which is a subsidiary of Siemens Energy, has faced substantial quality problems in its wind turbine operations, leading to increased failure rates of certain components. The company conducted a technical review of its installed onshore wind fleet in response to these issues.

Abnormal vibrations were detected in some 4X and 5X wind turbines during regular remote monitoring, affecting a limited portion of the onshore fleet.

These quality problems are not unique to Siemens Gamesa, however, as the wind turbine manufacturing industry as a whole has experienced challenges in recent years. Factors such as rising costs, supply chain constraints, and policy uncertainties have impacted wind manufacturers globally, leading to reduced deployment and operational difficulties.

For instance, GE had previously laid off a significant number of workers from its onshore wind unit due to strategic changes and financial pressures.

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