Electricity price auctions Wind turbine manufacturers in Germany under pressure

Electricity price auctions Wind turbine manufacturers in Germany under pressure

Electricity price auctions Wind turbine manufacturers in Germany under pressure

German wind turbine manufacturers are struggling with price pressure and slack orders from last year. Sales and operating profit of the manufacturers Nordex and Senvion collapsed again in the first half of the year, as they announced on Tuesday. The bottom line was that the companies were in the red.

Like other manufacturers in the industry, the two companies are struggling with the fact that more and more wind turbines are being installed, but they are bringing in less than before. The reason for this is the change from fixed feed-in tariffs to auctions. Across Europe, tenders for new systems are now mostly held via an auction, which depresses prices. This is especially true for onshore plants as the market is increasingly saturated and subsidies are being scaled down.

The German market is considered to be particularly difficult. Nordex boss José Luis Blanco does not expect his recovery until 2020. The years before that are likely to remain difficult. That is why Nordex, like other manufacturers, expanded into new markets. The strongest individual markets for orders are Brazil, Mexico and the USA. In Europe it is France, Turkey and Sweden.

Nordex’s sales slumped by more than a third to 957 million euros in the first six months. The bottom line was that the group posted a loss of a good 40 million euros. At Senvion, sales in the first half of the year slipped by almost 44 percent to 466 million euros.