Analysis: Siemens Energy's turbine troubles rattle wind sector

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Siemens Energy's disclosure of quality issues in its newer wind turbine models has exposed broader challenges in a sector suffering from rushed development, soaring materials costs and a flawed market design.

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In the wind sector, Siemens Energy stands out because its turbine division resulted from a botched merger of two original equipment manufacturers that gave rise to a culture of cutting corners and insufficient quality checks, people familiar with matter said. The EU wants wind energy to make up 43% of Europe's electricity consumption by 2030, up from 17% now.

"The strong competitive pressure along with the race for 'the latest and greatest' has forced manufacturers to shorten development cycles - and to offer prototypes," said Udo Schneider of Green Giraffe, which advises clients on large energy transition projects. To try to standardise production, raise quality and cut costs, GE has said it will reduce the number of rotor models it makes to four from 15, turbine covers to four from nine, and tower models to nine from 40.

 

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