GE Vernova, a critical global wind energy sector player, is experiencing significant financial strain due to widespread issues with turbine blade damages and escalating construction costs. The company, hired by Vineyard Wind to install 62 turbines south of Martha’s Vineyard, has reported financial losses of approximately $300 million in the current quarter and announced plans to downsize its operations while pushing forward with billions of dollars in unfinished projects.
This year, GE Vernova faced major setbacks when turbine blades at several project sites, including Vineyard Wind and the Dogger Bank project in the UK, were reported damaged. A broken blade at Vineyard Wind earlier this summer, caused by a manufacturing flaw, forced the federal government to order a halt in power generation from the site. Similar fractures at the UK’s Dogger Bank site delayed construction and negatively impacted the company’s financial performance.
CEO Scott Strazik acknowledged these difficulties, explaining that the installation process had been “stalled substantially” due to blade failures. “We’ve had to take a step back and look at the costs needed to complete the $3 billion backlog we have,” Strazik said in a call with investors. As the project lags, costs continue to mount, particularly with vessel rentals, further straining the company’s financial outlook.
While GE Vernova continues to work on Vineyard Wind, questions remain about how the recent downsizing will affect the project and its workforce. With blade repairs still pending, Vineyard Wind operations have yet to resume fully, although Strazik reassured investors that work on towers and nacelles was continuing.
Adding to the project’s challenges, Vineyard Wind is also facing scrutiny on Martha’s Vineyard, where a proposed worker housing project in Tisbury has drawn opposition from residents. Despite these hurdles, the project will create 90 operations and maintenance jobs, half of which are slated for residents.
GE Vernova is not slowing down on new opportunities in the face of these challenges. The company recently announced a contract with Italy’s IVPC Group to repower five wind turbines at the Montefalcone wind farm. Repowering involves upgrading older turbines with newer, higher-capacity models, increasing energy output while extending the lifespan of wind farms.
This project, set to begin in 2025, will utilize GE Vernova’s 6.1 MW–158m turbine, marking the first time the model has been deployed in Italy. The increased production is expected to contribute to Italy’s renewable energy targets, helping the country meet its 30% renewable energy consumption and 55% electricity generation by 2030.
GE Vernova’s financial troubles reflect broader issues in the offshore wind industry, grappling with rising costs and supply chain disruptions. According to a spokesperson, the company is implementing a restructuring plan to transform its offshore wind division into a “smaller, leaner, and more profitable” segment.
While the future remains uncertain for projects like Vineyard Wind, GE Vernova’s continued involvement in high-profile initiatives like the repowering of Italian wind farms demonstrates the company’s commitment to driving renewable energy growth worldwide. CEO Strazik emphasized that despite setbacks, safety and quality remain the top priorities: “We’re going to do everything with safety and quality first,” he said.
As the company works through these challenges, its ability to adapt and streamline operations will be critical in its long-term success in the renewable energy landscape.
