WAB: Siemens’ Decision to Invest in UK Result of German Policy Uncertainty

WAB: Siemens’ Decision to Invest in UK Result of German Policy Uncertainty

German wind industry network (WAB) criticized the proposal presented by German Federal Minister for Economic Affairs and Energy Sigmar Gabriel to reform the Renewable Energy Act (EEG).

The reaction was triggered by the recent decision of Siemens to build a blade factory and offshore services facilities in Hull, the United Kingdom, which will create some 1,000 jobs and see an investment of around EUR 370 million.

“The decision by Siemens to build its blade factory in the UK is a direct and concrete result of a gasping energy policy of the federal government,” said WAB's Executive Director Ronny Meyer.

Mr. Meyer added: “Investors must be able to rely on political commitments, otherwise they are uncertain and turn to other markets.”

He emphasized that many regions in Germany would have liked to have a new factory of this size. Siemens’ decision to invest in the UK shows that the federal government does not keep its promises and thus jeopardizes Germany as an investment location, Meyer warned.

The offshore industry is now facing a lack of orders, as the potential wind farm operators hold back with investment due to unclear policy framework. As a result, employees are being dismissed or given reduced working hours at many construction sites.

"Mr. Gabriel is also Minister for Economic Affairs, and this role obliges him to engage in establishing a safe environment for investors and jobs. This includes that fulfils the promises made," Meyer concluded.

Offshore WIND Staff, March 26, 2014; Image: WAB

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