Embattled German wind turbine manufacturer Enercon has secured long-term financing with its banks and its owner, the Aloys Wobben Stiftung, until the end of 2023, and will outsource its power generation and marketing business.

The agreement comes after the OEM in December told Recharge that its widening losses (the company had expected a deficit of more than €500m in 2019) had forced it into restructuring talks with financiers.

Enercon since has announced it would stop sourcing concrete towers from a plant at a production partner in Eastern Germany, and sold 85% of a large Swedish wind project, the 258MW northern part of the Markbygden II development.

As well as existing credit, the agreement now reached covers a new guarantee facility, which enables the company to provide the guarantees needed for large-scale onshore projects abroad.

“The arrangement gives us the planning security we need to continue successfully implementing the turnaround operations,” said Enercon chief financial officer Thomas Cobet.

Alongside safeguarding international business and stabilising project financing, management also expects the agreement to normalise relations with suppliers.

Hit badly by a collapse in its German home market, Enercon had changed its strategy to concentrate on international markets.

“This is connected with a stronger focus on Enercon’s core business, namely the development, sales and service of onshore wind energy converters, and areas directly associated with this,” said Enercon chief executive Hans-Dieter Kettwig.

As part of this strategic reorientation, Enercon will transfer its turbine operation, energy generation and marketing business to a new joint venture together with regional utility EWE.

“We are convinced that by outsourcing we will create a solid basis for sustainable further development, both of Enercon’s business model and the area of energy generation and marketing from onshore WECs (wind turbines), which will become increasingly significant in the next stage of the energy transition.”

The company also said that its structural changes include a drive to develop new cost-optimised wind turbines, and optimise its global supply chain due to tougher international competition.

Enercon in the past had carved out a leading position in the German market with high-end quality turbines and excellent service, which tended to be more expensive than those of rival OEMs.

Wind

Embattled Enercon secures financing until the end of 2023