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Grid Brief International: Can Wind Bounce Back?

Grid Brief International: Can Wind Bounce Back?

Earlier this year, we dove into the issues hammering the wind industry, especially offshore. It wasn’t a pretty sight. Here’s what it looked like just a few months ago:

Siemens Gamesa, for example, saw its shares crater by 70% last summer, provoking intervention from the German government. By October of last year, Siemens was mulling over wind division factory closures. Offshore wind has suffered project cancellations up and down the American East Coast and various European countries. In August of 2023, another industry giant, Orsted, saw its stock plummet by a quarter after massive writedowns on US projects. Even worse, wind has been forced to surrender its status as a “cheap” power option. In practice, some wind farms have risen to prices as high as nuclear power plants (both in practice and theory), yet without dispatchability and possessing only a fraction of nuclear’s capacity factor.

Toss in difficulty finding a supply of ships large enough to actually move components into place, and people had good reason to doubt the industry’s resilience. But we noted that onshore wind wasn’t doing so bad and that great political will existed to keep the industry alive. And it might be poised for a bit of a comeback.

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