Things are so bad Olaf Scholz, Chancellor of Germany has even said Siemens Energy is “very important”. Apparently talks are “intensive”, which presumably means the company is on death’s door and the German government is being asked to help save it.
From Watts Up With That?
In a recent revelation, the green energy sector shows signs of distress, as illustrated by the plummeting shares of Siemens Energy. An article on ZeroHedge meticulously unfolds the tale of challenges and uncertainties clouding the renewable energy sector, with Siemens Energy at its epicenter.
“Siemens Energy shares in Germany crashed on Thursday after the company warned its wind turbine business is grappling with quality issues and offshore ramp-up challenges.”https://www.zerohedge.com/commodities/siemens-energy-shares-crash-37-renewable-bust-sparks-green-panic
The company is in the throes of quality and operational challenges, which have significantly impacted its market performance, leading to a staggering 37% crash in its shares in Germany.
Siemens Energy candidly expressed its ongoing struggles, stating that it is
“working through the quality issues and is addressing the offshore ramp-up challenges as announced in the third quarter communication for fiscal year 2023.”https://www.zerohedge.com/commodities/siemens-energy-shares-crash-37-renewable-bust-sparks-green-panic
The company also revealed a rather cautious approach moving forward, refraining from concluding new contracts for certain onshore platforms and exercising strict selectivity in the offshore business.
The article further unveils the broader landscape of challenges faced by the renewable energy sector. It’s not just Siemens Energy feeling the heat; the entire offshore wind power industry seems to be in the midst of a financial crisis.
“Soaring inflation costs have undercut the sector’s growth and left major projects dead in the water just when their output is most needed.”https://www.zerohedge.com/commodities/siemens-energy-shares-crash-37-renewable-bust-sparks-green-panic
The narrative of Siemens Energy is not an isolated incident but seems to be a reflection of a broader trend in the renewable sector. Other giants in the industry, such as Orsted A/S, the world’s largest offshore wind farm developer, have also faced market adversities. Orsted A/S shares crashed due to warnings related to severe situations in US offshore wind projects, attributed to inflation, high interest rates, and supply chain woes.
In a rather grim portrayal of the sector’s health, the term ‘green panic’ has been coined, encapsulating the essence of the challenges faced by the renewable energy industry in the current macroeconomic environment. The article subtly underscores the gap between the ambitious green dreams and the harsh realities marked by financial and operational challenges.
In conclusion, the tale of Siemens Energy, as narrated by the article, serves as a mirror reflecting the turbulent waters navigated by the renewable energy sector. It brings to light the grim realities faced by the green energy companies as they collide with reality. The journey of Siemens Energy, marked by crashing shares and quality challenges, is emblematic of the broader struggles of the renewable industry in a world marked by economic uncertainties and operational challenges.
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