Siemens Energy's Wind Turbine Woes Cause Stock Slump and Industry Concerns

Wind turbine builder Siemens Gamesa has discovered a "substantial increase in failure rates of wind turbine components" in its legacy fleet, with significant problems found in rotor blades and bearings in some of its onshore turbine models. The scope of the problem extends to 15-30 percent of the company's total installed fleet, and parent company Siemens Energy has suspended its profit guidance, noting the possibility of more than $1 billion in extra costs. The maintenance troubles at Siemens Gamesa could exacerbate the already-serious supply chain and inflation issues facing wind farm developers.