Wind turbine O&M a bright spot for struggling manufacturers
Turbine makers see margins in excess of 20pc from operations and maintenance, but these could dwindle with ageing assets and expansion into multibrand servicing
Wind turbine manufacturers are consistently seeing higher margins from servicing than from the sale of new turbines, according to recent company results. Spanish turbine manufacturer Siemens Gamesa’s servicing unit delivered profit margins of 22.4pc in 2021. Such margins are not unusual, according to Juan Gutierrez, CEO of the company’s service business unit, noting that it has typically seen margins above 20pc. “Growth prospects remain strong going forward, driven by an increased aftermarket focus and, obviously, a very positive growth outlook for renewable energy solutions as part of the green transition,” he says. However, manufacturers’ high servicing margins may be artificially high as
Also in this section
3 May 2024
Developers look to government’s forthcoming budget to restore support as industry suffers loss of momentum
1 May 2024
Abundant storage and low cost of capturing CO₂ from sharply rising gas production mean NOC’s ambitious CCUS targets look well within reach
29 April 2024
Decarbonisation push and shifting multilateral trade policy sharpens continent’s need for carbon trading
29 April 2024
Canada’s oil sands producers need policy certainty to make the multibillion-dollar investments needed to achieve net zero, Pathways Alliance president Kendall Dilling tells Carbon Economist