German Gov’t Agrees To Bailout Giant Loss-Making Wind Farm, UK Increases Subsidies

German Gov’t Agrees To Bailout Giant Loss-Making Wind Farm, UK Increases Subsidies
Spread the love

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. 

Here’s more on the report:

As a result, Siemens Energy fears it will struggle to secure guarantees from banks, and has approached the government and Siemens to obtain a guarantee framework, business news weekly WirtschaftsWoche said.

The weekly, which first reported the talks along with Spiegel magazine, said Siemens Energy is seeking up to 15 billion euros in guarantees.

The German state would assume liability for 80% of an initial 10 billion euro funding tranche, while banks would be liable for the remaining 20%, WirtschaftsWoche said.

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.

Meanwhile, a financial crisis continues to accelerate across the wind industry, with the world’s largest offshore wind farm developer, Ørsted, pulling out of major US projects due to soaring inflation costs and a high-rate environment. And the renewable energy meltdown in wind has spread to solar as several solar power company stocks crashed on sliding demand. 

And so, hot on the heels of Germany’s bailout of Siemens, Bloomberg reports that the UK government is preparing to offer significantly higher subsidies for new offshore wind farms to get the country’s clean-power strategy back on track after developers shunned a previous auction, because the price was too low for offshore wind to be viable.

Denmark’s Orsted A/S, the world’s largest offshore wind builder, will decide by December whether to proceed with a UK development, while Sweden’s Vattenfall AB shelved a giant project off the English coast earlier this year in response to soaring costs.

While higher subsidies in the next auction round, known as AR6, may well reinvigorate offshore wind development, it will likely feed through to increased electricity costs for consumers still burdened with sky-high bills in the wake of last year’s energy crisis.

The energy transition to renewables across the Western world is cracking. Remember, the Biden Administration’s Inflation Reduction Act was all about ‘sustainable’ wind power… Time for another bailout? 

Share This Post

188 Responses to "German Gov’t Agrees To Bailout Giant Loss-Making Wind Farm, UK Increases Subsidies"

  1. 비아그라 100mg 1+1  2판(8정) 9,9000원  비아그라는 Prizer라는 제약회사에서 생산하는 발기 부전 치료제로,실데나필이라는 주요 성분을 포함하고 있습니다. 이 약물은 혈관을 확장시켜 성기에 더 많은 혈액을 유입시ㅣ켜 발기를 도와주는 효과를 가지고 있습니다.

    Reply
  2. 비아그라 100mg 1+1  2판(8정) 9,9000원  비아그라는 Prizer라는 제약회사에서 생산하는 발기 부전 치료제로,실데나필이라는 주요 성분을 포함하고 있습니다. 이 약물은 혈관을 확장시켜 성기에 더 많은 혈액을 유입시ㅣ켜 발기를 도와주는 효과를 가지고 있습니다.

    Reply
  3. 비아그라 100mg 1+1  2판(8정) 9,9000원  비아그라는 Prizer라는 제약회사에서 생산하는 발기 부전 치료제로,실데나필이라는 주요 성분을 포함하고 있습니다. 이 약물은 혈관을 확장시켜 성기에 더 많은 혈액을 유입시ㅣ켜 발기를 도와주는 효과를 가지고 있습니다.

    Reply
  4. 저희는 구글 계정 판매 전문 회사입니다.우리의 구글 계정은 이메일, 문서, 캘리더, 클라우드 저장 등의 기능을 포함한 포괄적인 디지털 솔루션을 제공합니다.구글 계정을 통해 우리는 사용자에게 효율적인 협업 플랫품을 제공하여 개인과 팀이 일과 삶을 더 스마트하게 관리할 수 있도록 지원합니다.

    Reply

Post Comment