SIEMENS ENERGY POSTS $5BILLION Q3 LOSS
The problems with wind turbines continue to mount mechanically and economically for Siemens Energy as the company posted a whopping $5 billion loss for the third quarter of 2023.
Hello again, it’s Rocketman, Ken Baxter, back from space and coming to you from sunny Las Vegas!
According to a report from the Epoch Times, the loss posted nearly quadrupled the original expected loss and has sparked doubts of whether the company will continue to remain in the volatile wind energy sector. Mechanical failures of turbines in Spain caused a large loss of shares after the company learned repairs to the turbines carried a price tag of $1.76 billion. Mechanical problems such as defects in the turbines’ massive blades and internal gearbox will need to be addressed immediately.
Mechanical issues are not the only obstacle that is hindering the expansion of wind power, at least in the United States. Construction of an alternative energy project is actually the easy part, the hard part is to connect to a distribution system. The sad fact is, many more investors, in already constructed wind turbine fields, stand to lose billions of dollars as many of these projects are abandoned.
An interesting video below. Did you know that incredibly, there are over 15 thousand projects that remain unconnected, waiting for permission to attach to the grid. Many of these projects are located in rural areas, miles and miles from the local power company where they need to connect. The cost to connect to local companies is not cheap and can be between $100-200 million to accommodate and distribute the energy produced. Wind projects take time for approval and can take up to 4 years. Sadly, developers are learning smaller power companies are already at capacity, requiring billions of dollars to upgrade, much of that expected from investors’ pockets.
Developers are bailing, cancelling future projects, as many completed wind farms are being strangled by infrastructure insufficiencies and red tape.
Under pressure from unrealistic governmental goals as part of the green agenda, the economic risk to investors is growing. Unconnected projects, with infrastructure deficiencies in common, is a big red flag for future developers and investors. Critical improvements to power company infrastructures, especially rural areas where many projects need to connect are years away. Sadly, we have gotten distracted by inserting our energies and dollars into far away lands when they should be directed to important, American infrastructure improvement.
