Hi, Watt Wizards!

1. Siemens Gamesa Announces Major Job Cuts

• In a bold move to address mounting challenges, Siemens Gamesa, the wind turbine division of Siemens Energy, has announced plans to cut approximately 4,100 jobs, representing a staggering 15% of its workforce.

The Driving Forces Behind the Cuts

• Declining Business Volumes: Reduced activity in non-core markets and lower demand for wind turbines have necessitated a leaner operation.

• Product Portfolio Streamlining: Siemens Gamesa aims to focus on a more optimized range of products, likely discontinuing or scaling back certain offerings.

• Financial Woes: The company reported a staggering €4.6 billion loss in 2023, partly due to the suspension of sales for two onshore wind turbine models with engineering defects.

A Turnaround Strategy for Stability

• According to outgoing CEO Jochen Eickholt, the job cuts, while painful, are necessary to provide stability for the company's total workforce. The restructuring is part of a broader effort to align Siemens Gamesa with the evolving industry demands and return to profitability.

Where the Cuts Will Hit Hardest

• Although the specific positions have not been officially confirmed, the cuts are expected to impact:

  - Denmark: Approximately 550 jobs

  - Spain: Around 430 jobs

  - Germany: Up to 370 jobs

A Shift in Focus

• Despite the challenges, Eickholt expressed confidence in the wind business's future prospects, affirming its strategic importance within Siemens Energy's portfolio. The company aims to maintain overall staffing levels by reallocating positions and hiring in other areas, such as offshore wind.

  Siemens Energy has initiated consultations with stakeholders, and an official announcement will be made after the process is complete

  ⁉️ What are your thoughts on Siemens Gamesa's restructuring efforts? Share your insights in the comments below !

2. France Rides the Wave of Floating Offshore Wind

France is making waves in the offshore wind industry with the announcement of winners for its first commercial-scale floating wind tender. Let's dive in!

Pennavel Project Sets New Records !

• The 250 MW Pennavel project off the coast of Brittany was awarded to a consortium of Belgium's Elicio and Germany's BayWa r.e. at a strike price of €86.45/MWh. Upon completion, it will be the largest floating offshore wind farm in the world, more than doubling Europe's current floating capacity.

Why Floating Wind Matters ?

• Floating offshore wind turbines unlock vast potential for wind power in deeper waters where traditional bottom-fixed turbines are less cost-effective. This technology opens up new frontiers for offshore wind development in regions like the Atlantic, Celtic Sea, Mediterranean, and Norwegian Sea.

The French tender attracted strong interest, with 10 consortia submitting bids, highlighting the global appetite for floating wind projects.

France aims high with targets of ,

• 18 GW of offshore wind by 2035

•  45 GW by 2050

  To meet these goals, the government is simplifying planning and permitting procedures, aiming to halve the current 10-12 year timeline for offshore wind farm development.

Global Competition Heats Up

While France surges ahead, other countries risk falling behind:

• Norway postponed its 1.5 GW Utsira floating tender

• Spain is consulting on an offshore wind law

• Italy has yet to approve its auction timetable

Europe may have at best 3 GW of floating wind by 2030 if auctions aren't completed by 2025. The race is on!

What are your thoughts on France's floating wind ambitions? Share your comments below!

1. GE Vernova Lands Massive $700 Million Wind Turbine Deal in Spain

GE Vernova has secured a major $700 million+ contract from Copenhagen Infrastructure Partners (CIP) to supply 125 of its 6.1-158 wind turbines for the approximately 760MW Teruel wind farm in Aragon, northeastern Spain. The deal includes delivery, installation, commissioning, and a 15-year service agreement.

Record-Breaking Spanish Wind Farm

• The 760MW Teruel project is expected to become Spain's largest wind farm upon completion. CIP plans to invest around €1 billion for construction and an additional €1.4 billion for operation and maintenance over the project's lifetime.

Environmental and Economic Benefits

• The wind farm is anticipated to reduce carbon dioxide emissions by 320,000 tonnes annually. The project is also projected to provide a significant boost to Spain's wind industry, contribute to renewable energy targets, create jobs, and generate tax revenue.

Production and Construction Details

• GE Vernova will manufacture the turbine blades at its Castellón factory, while towers will be sourced from suppliers in Albacete, Burgos, and Galicia. Construction is set to commence shortly, pending one final permit. This order was booked in Q4 2023 and represents one of GE's largest ever wind turbine contracts in Spain.

2. Brookfield Launches Massive Bid for French Renewable Energy Giant

Brookfield Asset Management, a global alternative asset manager, has made headlines with its €6.1 billion (approximately $6.59 billion) bid to acquire a majority stake in Neoen, a leading French renewable energy producer.

A Significant Premium and Strategic Move

• The proposed deal involves Brookfield acquiring a 53% ownership in Neoen from its current investors, including the privately held Impala and an alliance of seven major French insurers. Notably, the offer price represents a premium of nearly 27% over Neoen's last closing share price, signaling a substantial investment in the renewable energy sector.

Accelerating Renewable Energy Development and Global Leadership

• After securing the majority stake, Brookfield plans to initiate a mandatory tender offer for all remaining Neoen shares and outstanding convertible bonds, using only cash as consideration. Brookfield aims to leverage its expertise and capital to accelerate Neoen's development and strengthen its global leadership in renewable energy

Solidifying Position in the Evolving Energy Landscape

• The potential acquisition underscores Brookfield's commitment to expanding its renewable energy portfolio and solidifying its position in the rapidly evolving energy landscape. This strategic move demonstrates Brookfield's recognition of the importance of sustainable energy solutions and its willingness to invest in this crucial sector.

AI-Powered Geothermal Exploration

Zanskar Geothermal & Minerals, an AI-native geothermal developer, has secured $30 million in funding led by Obvious Ventures to scale its AI-powered geothermal exploration technology.

Unlocking Undiscovered Geothermal Resources

• Leveraging machine learning, advanced sensing techniques, and big data analysis, Zanskar has discovered more potential geothermal prospects than the entire industry over the last decade, making geothermal exploration more accessible and cost-effective.

Investors Backing Innovative Technology

• The funding round was joined by previous investors Munich Re Ventures, Union Square Ventures, Lowercarbon Capital, Safar Partners, First Star Ventures, and newcomer Clearvision Ventures, highlighting the interest in Zanskar's innovative approach.

Affordable and Widespread Geothermal Energy

• Zanskar aims to make geothermal the cheapest and most widely deployed firm renewable energy source by unlocking a deep pipeline of new geothermal resources needed for the energy transition, creating opportunities to distribute clean geothermal power and address the current energy crisis.

Partnership with US Department of Defense

• Zanskar was selected by the US Department of Defense's Defense Innovation Unit to explore new geothermal resources and advance energy resilience, demonstrating the practical application and potential impact of its technology.