Wind power industry drifts off course as perfect storm of issues affects dozens of projects

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The race to reduce reliance on fossil fuels is putting pressure on manufacturers and supply chains to keep pace with demand for more clean energy

, especially in the European Union which is finalizing a legally binding goal to produce 42.5 per cent of energy from renewables by 2030.

Even before the EU agreed its new renewables target this year, companies including Orsted, Shell, Equinor, wind turbine manufacturer Siemens Gamesa and WindEurope had warned that the offshore wind industry was not big enough to deliver on climate targets. Over the last two decades, the industry has grown fast and cut technology costs to be on a par or even cheaper than fossil fuels in some parts of the world. But the race to develop ever bigger and more efficient turbines may have been too hasty, some executives and analysts said.

Fraser McLachlan, chief executive of GCube Insurance, said the number of insurance claims from wind developers has fallen in the past year but the amounts and severity of claims has gone up significantly. “We became a victim of our past successes over the last years. The interest in our products was very high, and this resulted in increased number of orders in 2021 and 2022 and it now requires a ramp-up in almost all of our production facilities,” he said in August when the company reported third-quarter results.

“This is coming through to the developers who are discussing prices of turbines, labour, project deployment, hiring ships and finance and that’s flowing into how they are budgeting projects,” said Wallace at Jupiter.

 

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