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The energy transition will fail unless wind power solves the problem: CEO

Wind turbine blades at the Siemens Gamesa facility in Hull, England, January 2022.

Paul Ellis | AFP | Getty Images

CEO of Siemens Energy On Wednesday, he argued that the energy transition will fail unless the industry addresses the many problems facing the wind power sector today.

In an interview with CNBC’s Squawk Box Europe, Christian Bruch said his company is “at the heart of the energy transition,” but that “there are challenges with the wind,” especially when it comes to supply chains. .

“Don’t forget, renewable energy like wind requires roughly, roughly ten times as much material. [compared to] … what conventional technology requires,” he said.

“So if there is a problem with the supply chain, it hits … very windy and this is what we are seeing.”

“And this, unfortunately, obviously leads to the situation [where] …has a significant impact on the outcome of the group as a whole. “

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On Wednesday, Siemens Energy said its “overall performance” was “suppressed by negative growth in 2018.” Siemens Gamesa Renewable Energy,“Majority-owned wind turbine manufacturer.

In a statement, Siemens Energy reported adjusted income before interest, tax and amortization (and special items) of €379 million (approximately 393.8 million euros), compared with €661 million in the 2021 financial year. dollar).

“Gas and Power benefited from its turnaround plan, with sharply higher adjusted EBITA, offset by a significant loss at SGRE,” he added. This was “due to the difficulty of launching the 5.X onshore platform and delays in his chain of supply.”

Siemens Energy reported a net loss of €647 million, compared with a loss of €560 million in the previous year, but also reported a record backlog of €97.4 billion.

“Due to widening losses and the challenges facing the company now and next year, Siemens Energy’s Executive Board advised the Supervisory Board at its Annual General Meeting in February 2023 that it would not propose a dividend for 2022. I suggest.” added.

A new management team was installed at SGRE. tumultuous times — and Siemens Energy on Wednesday also referenced the announcement of a “voluntary cash tender offer to acquire all outstanding shares of SGRE” in May.

Overall, Bruch seemed optimistic about Siemens Gamesa’s prospects. “I think I have confirmed that all relevant measures have been initiated and started with Jochen Eikhold. [SGRE’s new CEO], work on the various elements moving forward, and take on board those who are progressing step by step. “

“And we are confident that we will be able to capitalize on this great medium- and long-term wind potential that is out there,” he said. [the] An energy transition without wind energy will not work. “

“I have to fix it”

Despite this positive outlook, Bruch noted that some issues facing the sector need to be resolved. “There is still a long way to go,” he argued when it comes to maturing the wind industry.

“How do you manage that business and how do you manage long-term risk,” he said.

“And in a world that is much more volatile, much more difficult and much more multilateral than before, how do we spread risk along the supply chain between customers, operators and ourselves? do you?”

He explained that there were certain areas the industry had to solve, such as sourcing and supply chain.

“And there are certain elements that the market needs to fix certain things,” he added.

This included reducing project approval times and spreading risk between operators and equipment suppliers who were making “good enough profits.”

These were “discussions we need to have over the next 12 months to move this business forward.”

“But there is no doubt that if we do not solve it as an industry, we will miss a significant portion of the energy transition and we will fail in the energy transition. So we have no choice but to fix it. ”

https://www.cnbc.com/2022/11/17/energy-transition-will-fail-unless-wind-power-fixes-problems-ceo.html The energy transition will fail unless wind power solves the problem: CEO

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