According to the latest news from the World Energy Network, after experiencing setbacks caused by supply chain disruptions and quality problems of large turbines, large wind power companies around the world are working hard to return to profitability.The financial performance of Denmark's Ørsted Energy and Vestas has shown positive signs of improvement, while Germany's Siemens Gamesa is undergoing restructuring to promote the development of the wind power business on the basis of solving quality problems.Global demand for wind power remains strong, but in the long run, wind power companies must prioritize systematic testing of equipment to ensure its quality and meet the challenges posed by supply chain fluctuations.

In the past few years, the wind power industry has been in trouble due to supply chain and wind power equipment quality control issues.Now, global wind power giants are working hard to reshape their businesses to achieve rapid profitability.As countries transition to green energy, these wind power companies can play an important role in the development of renewable energy, but they must prove that they are up to the job.

In recent years, due to various challenges, some of the world's major wind power developers have faltered.First, the supply chain was severely interrupted during and after the epidemic, causing many wind power companies to lag behind in developing new projects.Second, the growing demand for materials related to renewable energy operations has led to a sharp increase in the price of wind turbines.Third, some wind power companies have been racing to develop larger and more efficient wind turbines in recent years, but these giant turbines have suffered quality failures after their rapid launch, and many equipment needs to be recalled.

Due to increased inflation, rising interest rates and supply chain delays, profits of Denmark's Ørsted Energy, the world's largest offshore wind farm developer, have declined in recent years.In May this year, Ørsted Energy announced that the company's profit before interest, tax, depreciation and amortization in 2023 increased by 8% from 2022 to US1.08 billion.The company's CEO, Mas Niepel, said: "We are confident that we will achieve our business goals as planned.”

Another Danish wind power giant, Vestas, announced in early March this year that after several years of downturn, the company will return to profitability in 2023.Vestas' full-year operating profit excluding special items in 2023 was US2249 million, compared with a loss of US11.2 billion in 2022.Vestas expects that the full-year operating profit margin excluding special items in 2024 will be between 4% and 6%, compared with 1.5% in 2023 and -8% in 2022.

In other regions, the wind power division of Siemens of Germany will also usher in an improvement in profitability.As of May 24, Siemens' share price rose 13% after the company raised its annual profit forecast.Christian Bruch, CEO of Siemens Energy, said that the company's wind power business will be more stable this year, and the market demand for power grid equipment has also increased, which indicates an increase in profitability.The company expects its revenue to grow by 10% to 12% this year, and its profit margin excluding special items will be between plus or minus 1%, compared with its previous forecast of -2% to 1%.Bruch said: "In the future, we will actively carry out wind power business on land and offshore, especially offshore wind power business.”

Siemens is also working hard to solve its quality control problems to ensure the smooth progress of new project development.The pursuit of too fast development speed is considered to be one of the main reasons for the quality control problems of Siemens onshore wind power equipment last year.The company is considering whether to extend the delivery cycle of onshore products to ensure that the equipment has undergone rigorous testing.

Although the wind power industry faces complex challenges, the performance of the wind power sectors of some industry giants has recently improved, indicating that the industry is making progress.Global demand for new wind power projects is strong. However, wind power companies must ensure adequate testing and quality control in project development, rather than rushing to meet growing demand.In addition, the risks that may be caused by fluctuations in raw material prices and global supply chains must be considered.