GE Vernova Shifts Focus from Supersized to Workhorse Wind Turbines
GE Vernova is altering its strategy in the wind turbine market. Despite previous plans to escalate the size of their offshore wind turbines, the company now opts for more modest but reliable alternatives.
Initial Enthusiasm for Upsized Turbines
Last year, GE Vernova exhibited confidence in their upscaling journey. At a GE Investor Conference, CEO Scott Strazik spoke of the warm market acceptance received by the prospect of 17 to 18 MW variants of Haliade-X, a sizeable leap from what was being delivered at the time.
Pivoting Toward the Haliade-X 15.5 MW-250
Despite the initial enthusiasm, GE Vernova is recalibrating its focus. According to the recent update in the company’s EX-99 filing with the US Securities and Exchange Commission, GE makes it clear that its current Haliade-X series offers a span ranging from 12 MW to 18 MW with impressive capacity factors. Nevertheless, the company’s future is anchored to their Haliade-X 15.5 MW-250 turbine, which is touted as their upcoming stalwart offering.
The capabilities of these turbines are not to be understated — a single 13 MW Haliade-X model boasts the capacity to supply electricity to as many as 16,000 European households.
Financial Considerations Impacting Development Decisions
Last year wasn’t smooth sailing for GE Vernova’s offshore wind business, which encountered financial setbacks. With an eye on the future, the company predicts that the current constraints on margins will persist through 2024 as they continue to fulfill the existing Haliade-X orders, a process that will significantly draw upon cash flow and working capital. Nevertheless, GE holds an optimistic view, foreseeing an improvement in capital dynamics and profit margins after 2024.
GE’s Haliade-X in Action at the Vineyard Wind I Project
The shift in strategy is juxtaposed against the tangible success of the Haliade-X series, as demonstrated by the Vineyard Wind I project near Massachusetts. This initiative, with a capacity of 800 MW, is powered by GE’s robust 13 MW Haliade-X turbines, showcasing the company’s commitment to delivering sustainable solutions in the burgeoning offshore wind sector.
