by Linnea Lueken at Watts Up With That
A recent article at OilPrice.com explains how wind power is unprofitable, going into detail on some of the economic hurdles that industrial wind power development has encountered. Supply chain problems, inflation, likely the high price of fossil fuels, and other issues have resulted in billions of dollars in losses. Despite this, wind power companies are unconcerned about going bankrupt, due primarily to the fact that governments are mandating that increasing numbers of wind turbines be added to the electric grid pursuit of net-zero carbon dioxide emissions policies, complete with generous subsidies.
The author of the OilPrice.com article, “Wind Power Has A Profitability Problem,” Felicity Bradstock, points out that despite massive investments and mandated construction by governments leading to growth in the wind power industry, “companies are realizing that it is difficult to translate wind power into profits.” Bradstock says the return on investment has not been what companies expected, writing:
In June last year, there were reports that some of the world’s biggest wind energy companies were battling heavy losses. Vestas Wind Systems, General Electric Co., and Siemens Gamesa Renewable Energy all faced extremely high raw material and logistics costs following the pandemic when supply chains were disrupted. This came after an arms race in which wind majors were competing to build the tallest, most powerful wind turbines at whatever cost would put them ahead of the rest.
Losses were seen across the board in 2022, to the tune of $2 billion for GE’s renewables division, $1.68 billion for the largest turbine manufacturer Vestas, and Siemens Energy lost $943.48 million.
Apparently, though companies are optimistic,…
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