Recent financial setbacks in the wind industry are beginning to strain the Biden administration’s efforts to promote clean energy. Despite the substantial subsidies provided in 2022, experts suggest that the need for additional funding won’t hinder the ongoing push for wind and solar farm development.
David Blackmon, an energy analyst with over 40 years of experience in the oil and gas sector, expressed in his “Energy Absurdity” Substack that lobbying for more renewable energy funding is likely imminent.
“Expect to witness an effort in Washington, D.C. to allocate billions more dollars to bail out Big Offshore Wind developers soon,” Blackmon stated.
Over the years, the federal government has poured billions into projects to fulfill environmental objectives, often resulting in companies going bankrupt.
In 2009, the Obama administration co-signed $535 million in loans for the solar panel manufacturing startup Solyndra, which declared bankruptcy two years later, leading to 1,100 job losses.
Another solar manufacturing startup, Abound Solar, received $400 million in government-backed loans to expand its facilities, only to file for bankruptcy in June 2012, leaving 405 unemployed.
Fisker Automotive obtained a $529 million green-energy loan from the Department of Energy but filed for bankruptcy in 2013 after spending $192 million and failing to meet sales milestones.
Today, the Biden administration is allocating taxpayer dollars to offshore wind projects, but developers and manufacturers are struggling.
General Electric’s CEO stated in August that the company’s offshore wind operations are projecting annual losses of around $1 billion. German turbine manufacturer Siemens Energy expects a $5 billion net loss this year and is seeking guarantees from the German government for nearly $16 billion USD.
Chinese wind turbine maker Xinjiang Goldwind Science & Technology Co. reported a 98% decrease in net income in the third quarter, down to $1.28 million compared to the same period in 2022.