What's Going Wrong With the Renewable Energy Industry This Year
Following a disappointing 2021, investors in wind power were hoping for a better 2022. Unfortunately, that hasn't materialized. Once again, the leading players in the West, namely General Electric's (NYSE: GE) renewable energy business, Vestas (OTC: VWDRY), and Siemens Gamesa (OTC: GCTAY), will miss their initial earnings estimates this year. So what's going wrong, and is the wind power industry uninvestable?
The challenges in 2022 can be put into three buckets. First, shortages and supply chain issues have bedeviled the global economy over the last year, and those have in turn contributed to higher prices for raw materials.
All three of these companies -- and indeed, much of the broader industrial sector -- believed that the supply chain issues (logistics and transportation, etc.) would ease in the second half of 2022. Unfortunately, they have persisted. These are particularly problematic issues for wind turbine manufacturers since assembling and transporting those massive structures are logistical feats in and of themselves.
Source Fool.com
