Siemens looks to recover offshore wind HVDC losses

GERMANY: Siemens is seeking to recover some of the €800 million it has lost in the development of offshore wind substation platforms in the German North Sea.

Siemens is currently working on the Borwin 2 platform

Speaking to investors after the publication of Siemens' quarterly results, CEO Joe Kaeser said that "recovery efforts are underway, but they will be considered once we are in agreement with other parties, and that will take some time."

He did not specify from whom the company would recover the money. Siemens was contracted to build the four high-voltage direct-current transformer plantforms by grid operator Tennet.

In total, Siemens expects to book charges of around €800 million relating to delays and cost overruns for four offshore wind platforms in the German North Sea. It recorded €67 million of charges in the latest quarter.

However, Kaeser said risks associated with completion of the projects were on the wane.

"We are now not depending so much on the weather for shipping the platforms out. We're on platform and in an area where we know exactly what we need to do, that is the commissioning. So the likelihood of disappointment has gone down," Kaeser said.

He added that the Helwin platform is 90% complete, Borwin 2 at 92%, Sylwin 1 at 78% and Helwin at 82%.