SGRE consolidates leading position in offshore wind – GlobalData assessment

2 May 2019

GE has abandoned the rights to supply and service its Halide 150-6MW turbines for two French offshore wind projects totalling nearly 1GW, and Siemens Gamesa (SGRE) has stepped in to fill the space, signing a new framework agreement with EMF for the remaining two projects after GE’s exit, according to an assessment by analysts GlobalData.

Ankit Mathur, practice head of Power at GlobalData, commented: “SGRE was a logical replacement because it had already partnered with large developers such as EDF and Orsted for the supply of turbines and has a proven track record in the European offshore industry.

“SGRE will stand to benefit from this supply agreement as it will solidify their position as leader in the offshore wind segment and will also help arrest their declining wind offshore order book. The revenue from the offshore WTG segment recorded an increase of 21% in Q1 2019 to reach $913 million from $752 million on a year-on-year basis.

“The company is hoping for a robust growth of more than 27% annually for their wind offshore business between now and 2025. This growth will be largely fuelled by newer offshore markets, including Taiwan and – especially promising – the USA. Further the company is not keeping any stone unturned in order to reduce the cost, improving productivity and optimising the synergies gained from the Siemens and Gamesa merger.  

“With GE still nascent in the offshore wind segment and another offshore wind competitor, Senvion, battling to stay afloat, the agreement will provide SGRE with the best chance to garner additional offshore projects in Europe and worldwide, while the competitors have their guards down owing to falling pricing and fierce competition.”

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