Enercon To Receive €500 Million Worth Aid From German Govt

In a major announcement, Enercon has informed that the German wind turbine maker will receive € 500 million as financial aid from the German Government from the WSF Economic Stabilisation Fund. The state fund is meant to help the renewable energy player to deal with the impact of the COVID-19 led pandemic.

The turbine manufacturer had claimed that it suffered a breakdown or supply chain/logistics problems caused by restrictions due to the COVID-19 spread. Enercon had said that the energy transition to low carbon economies has slowed down.

The state fund created by an intra-ministerial committee of the German Government. The key purpose behind the creation of the specific fund is to provide relief against unexpected additional costs of materials, components, transport, logistics etc. The committee held that the delays led to delays in important projects.

Enercon also added that it wanted to reduce its liquidity risks and that the company believes that supply chain can slow down again if COVID-led restrictions return in China. The turbine maker also held that it expects a balanced financial result in this fiscal and maintains a solid financial basis. At present, Enercon employs about 13,600 employees globally.

In Germany, the government had changed the approval system for project development from state support models to auction based approval. This has caused lowered investments in infrastructure.

The Russia-Ukraine war has also forced several European countries to expedite renewable energy expansion as they look to end their dependence on the Russian fossil fuel supplies.

In Germany, Federal Minister for Economic Affairs and Climate Action, Robert Habeck is looking to expedite the construction work again as Germany wants to increase its renewable share in the energy mix and axe off its imports of fossil fuels from Russia.