Siemens Energy travails have serious implications for Net Zero

London, - Policymakers must get to grips with the implications of the crash in Siemens Energy’ share price. That’s the message from energy economist Professor Gordon Hughes.

Last week, Siemens Energy announced that its profits would suffer a large hit as the result of failures in many of the wind turbines built by its renewables division. Professor Hughes is now pointing out that this will inevitably mean that wind power is going to become more expensive still.

“Siemens Energy’s problems were in onshore wind turbines. Our expectation should be that offshore turbines will be even worse. It’s very unlikely we’ll see significant cost reductions.”

The implications for the UK’s Net Zero policy, built around an assumption of ever cheaper wind power, are profound. While the industry has claimed its costs are falling rapidly, a series of studies of the financial accounts of UK windfarms has found little corroborative evidence, and the news from Siemens Energy makes it unlikely there will be significant improvement in the near future, because future windfarms will have to be built to much higher standards.

Professor Hughes says: “Policymakers need to understand that windfarms are going to deliver less power than expected, for a shorter time, and at much higher cost. The focus on renewables, and in particular on wind power, must now be seen as a disastrous mistake. We must row back, and quickly.”

Professor Hughes’ thoughts are set out in a new article at Net Zero Watch: Wind costs will remain high

Contact

Prof Gordon Hughes
e: gordon.hughes@gmx.co.uk

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