Redundancies, Bankruptcies, Unrealistic Power Contracts: The Wind Industry Crisis Deepens

[Elderberry]

Not a lot of people know that By Paul Homewood 11/26/2019

Redundancies, Bankruptcies, Unrealistic Power Contracts: The Wind Industry Crisis Deepens

Eddie O’Connor, the founder of Airtricity and Mainstream Renewable Power, is one of the most notable entrepreneurs in the wind industry and is consequently regarded with awe. His personal success speaks for itself, and if he chances to add anything further, obiter dicta, people pay attention. Speaking at a Reuters conference, Offshore and Floating Wind Europe 2019, which was held in London on the 11th and 12th of November this year, Mr O’Connor seems to have dropped a bombshell. Reports claim that he shocked his audience by describing the wind sector as “on its knees” and in a state of “failure”, because “cut-throat” competition has driven contracted power prices to levels so low that wind is no longer “profitable”.

No objective observer will disagree that the wind industry overall appears to be struggling. Enercon, the Mercedes Benz of turbine makers, has just announced 3,000 redundancies in its home town of Magdeburg, and admitted to a $220m loss in 2018, with worse to come in 2019 (“Thousands to lose jobs as German wind crisis hits Enercon” 11.11.2019).

Indeed, in a measure quite incredible for a flagship German firm, Enercon has explained that it can no longer afford to make wind turbine blades in Germany, and will perforce attempt to preserve its viability by manufacturing overseas, presumably in locations where lower energy costs mean that labour is much cheaper.

More: https://notalotofpeopleknowthat.wordpress.com/2019/11/26/redundancies-bankruptcies-unrealistic-power-contracts-the-wind-industry-crisis-deepens/

[IsailedawayfromFR]

It is the problem when government gets involved by picking winners and losers.

Wind is a big loser.

[Joe Wooten]

Reports claim that he shocked his audience by describing the wind sector as “on its knees” and in a state of “failure”, because “cut-throat” competition has driven contracted power prices to levels so low that wind is no longer “profitable”.

In other words, government subsidies are being cut and they cannot make a "profit" without them being higher.

[IsailedawayfromFR]

Reports claim that he shocked his audience by describing the wind sector as “on its knees” and in a state of “failure”, because “cut-throat” competition has driven contracted power prices to levels so low that wind is no longer “profitable”.

In other words, government subsidies are being cut and they cannot make a "profit" without them being higher.

Wind cannot stand up against the abilities of natural gas power plants, now with very low fuel prices, to provide cheap, sustainable power even when the wind does not blow.