German wind turbine maker Senvion files for insolvency
A German court approved an application for insolvency from wind turbine manufacturer Senvion, which has more than a billion euros of debt, report Alexander Hübner and Michelle Martin for Reuters. Senvion has faced delays and penalties related to big projects, while the wind industry as a whole has seen falling prices and increased competition as it moves away from governments guaranteeing generous fixed subsidized tariffs for power toward an auction-based system that favours the lowest bidders, write the authors. “Market leaders Siemens Gamesa and Vestas have more pricing power, putting smaller suppliers under pressure.”
German wind turbine makers have long warned that the boom of the past years could come to an abrupt end due to regulatory changes in their home market and growing international cost pressures. Following a sharp drop in new onshore wind power installations in Germany in 2018, the industry also warned in January that mounting resistance against new turbines endangers a sufficient supply of renewable energy demanded by industry and national climate targets.