German wind turbine producer Senvion shares down 90 percent since mid-2018
Shares in German wind turbine maker Senvion have lost almost 90 percent of their value since May 2018, due to fierce competition and falling prices in the sector, Alexandra Jegers reports for the Süddeutsche Zeitung. Senvion says it is currently negotiating with investors and has begun to devise a reorganisation plan to safeguard its funding. According to the article, Senvion’s revenue in 2018 amounted to 1.45 billion euros, falling short of the expected 1.6 billion euros because of delays in the installation of new turbines, the company says. CEO Yves Rannou admits Senvion has made “operational mistakes” but says the company’s order books are full and a strategic reorientation away from Germany towards emerging markets in India or Latin America could put it back on track for growth.
Despite having among the highest wind power capacities in the world and many leading manufacturers, the German wind sector fears that with new capacity being installed at a slower rate domestically, and the international market becoming increasingly competitive, it could see a drastic fall in growth prospects. The German government aims to cover 65 percent of it power consumption with renewables by 2030, yet new wind farm projects meet growing resistance from locals who argue the turbines are a blot on the landscape and reduce the value of their homes.