Green energy dreams are fading…
While the German state and the banks will try to save Siemens Energy, we too have chosen???
The French government is going to make electricity consumers pay to finance the balance sheet debt that EDF can no longer afford to finance the EPRs and save EDF!
Fantastic, right?
In both cases, it shows that we are in a dead end in the tunnel with no possible exit… And we are being predicted the end of fossil fuels.
It’s comical…
Siemens Energy: 15 billion euro rescue plan for wind turbine manufacturer
News published on 11/14/23 4:31 p.m.
The troubled German energy group Siemens Energy will benefit from a rescue plan worth 15 billion euros in bank guarantees, financed mainly by the state and private banks, the government announced on Tuesday.
“The prerequisite of the federal government” is “that all stakeholders participate appropriately in protecting the company,” he added.
Siemens Energy, which is facing financial difficulties, particularly in its wind power sector, has requested support from the public authorities.
The group is suffering, like the sector as a whole, from unfavorable general conditions: rising costs of construction materials, interest rates and Chinese competition. It is also faced with quality problems on its wind turbines, which prevent it from fulfilling orders and therefore lead to a drop in its revenues.
The wind turbines are manufactured by the company’s Spanish subsidiary, Siemens Gamesa. The problems specifically concern defective components, mainly bearings and turbine rotor blades.
The German government highlighted the group’s strategic role in the energy transition to justify coming to its rescue, explaining that Siemens Energy was “currently experiencing difficulties in obtaining the required guarantees on the financial market”.
Siemens Energy, the leading producer of wind turbines in Germany and one of the world leaders, entered into discussions at the end of October with the banks, the federal government and the parent company, Siemens, with a view to obtaining guarantees to save its wind sector.
According to the agreement reached, Siemens Energy will receive a total of 15 billion euros in guarantees from banks and in the form of cash flow from a joint venture formed in India with Siemens. Half of this envelope (7.5 billion euros) will be guaranteed by the State.
This boost from the German government is explained by the importance of the company in the German industrial fabric (26,000 employees in the country) and by the importance of wind power in the German energy transition, a country which has just abandon nuclear power and plans to phase out coal if possible in 2030.