Germany Rescues Siemens Energy After a Multibillion-Dollar Setback Linked to the Iberian Gamesa Crisis
Siemens forecasts a loss of about 4.5 billion dollars for the current year after a major setback tied to Gamesa turbines. The wind power group, once a family enterprise rooted in Werner von Siemens’s 1847 founding, merged with a German powerhouse to form a global player. Gamesa, originated in Vitoria in 1976, joined forces with Siemens to extend their reach to markets in 90 countries, becoming a leader in the wind industry. The current question is whether the rescue is primarily driven by a German or Spanish impulse as governments in both nations step in with guarantees.
Germany Steps In to Support Siemens Energy After a Loss Stemming from the Gamesa Controversy
Gamesa began as a technology-focused company in the 1970s, later being brought under Iberdrola’s wing in a 1990 joint venture with the energy company. Iberdrola would eventually hold the majority stake for years, with the company becoming a clear wind energy specialist by the mid-1990s. By 1994, Gamesa was primarily oriented toward aviation, but a strategic pivot toward wind energy redirected its course. The company shifted away from aviation in 2006 to concentrate on wind power.
International growth accelerated through Iberdrola’s global investments in wind farms, and Gamesa emerged as a key supplier. A later collaboration with Areva marked a foray into offshore wind, though the venture faced challenges. In 2016, Siemens acquired Gamesa, creating a combined force in the wind sector. The merger sparked a shareholder dispute with Iberdrola, culminating in Iberdrola selling its 8 percent stake for roughly 1.1 billion dollars and exiting the capital in 2020, setting the stage for governance challenges within the wind business.
Spanish Government Ready to Engage in the Siemens Gamesa Rescue Effort
The company has faced ongoing difficulties since 2022, including tensions with major customers and suppliers over large turbine supply agreements. A fragile relationship eventually found footing with a peace accord last spring, and Iberdrola recognized Siemens Gamesa with a planned milestone. A roughly 1.5 billion euro contract for 95 turbines will equip the East Anglia Three offshore wind farm in the United Kingdom.
Iberdrola and Siemens Gamesa Seal a Major Turbine Order for One of the World’s Largest Offshore Wind Farms
Spain, Germany and Denmark
The Siemens Gamesa merger received approval from Gamesa shareholders in October 2016, with an overwhelming majority in favor. In December, regulatory clearance followed from the National Securities Market Commission. The merged entity lists its headquarters for onshore operations in Spain, while the offshore business is headquartered in Hamburg and in Denmark. The consolidation positioned the combined group as a leading force in the wind sector.
Before the Gamesa acquisition, Siemens Wind Power had already expanded after purchasing the Danish turbine maker Bonus Energy in 2004, with wind power operations tracing back to 1980. With the first offshore wind farm established in 1991, the company led the global offshore turbine market, and in May 2022 Siemens Energy announced a bid to acquire the remaining Siemens Gamesa shares, signaling a comprehensive corporate realignment.
Siemens Faces a 4.5 Billion-Dollar Loss Projection After Gamesa Turbines Fail
On February 14, 2023, Siemens Gamesa stock trading halted on major Spanish exchanges. By June 13, minority shareholders approved a capital reduction for the remaining 2.21 percent stake, clearing the path for Siemens Energy AG to become the sole shareholder with a controlling stake exceeding 98 percent. The shift solidified Siemens Energy’s governance over the wind assets and suppliers, reshaping the company’s trajectory in a market still adapting to rapid technological change.