Energy Troubles

Gathering Dust at Home

SiemensTurbine-Siemens
The biggest gas turbine in the world, unloved in Germany.
  • Why it matters

    Why it matters

    Spectacular deals like that signed in Egypt over the weekend will not be enough to fill the order books of Siemens’ energy division over the long term.

  • Facts

    Facts

    • Siemens signed a deal worth at least €4 billion with Egypt over the weekend. Another €6 billion in additional orders could follow.
    • Despite the signing, Siemens is already cutting as much as 1,200 jobs in Germany. Thousands more could be on the chopping block by the summer.
    • Germany’s transition to renewable energy puts the emphasis on smaller, flexible gas powered plants rather than the large power plants Siemens produces.
  • Audio

    Audio

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The sun was shining over the festival tent as German utility firm E.ON officially put the most modern gas and steam power plant into operation in September 2011. State secretaries and local politicians, managers and developers had come to the town of Irsching in the region of Upper Bavaria to help cut the tape.

The former head of Siemens’ energy division, Michael Süss, was on hand for the unveiling. His company, which produces the world’s largest gas turbines, had contributed to the project. “This power plant is also part of the energy transition,” said Ingo Luge, CEO of E.ON Energy, referring to Germany’s politically-mandated shift away from nuclear energy and towards renewable sources.

Three-and-a-half years later, everyone here is singing the blues. The Irsching plant, once considered a prototype, suspended operations long ago and is expected to be decommissioned.

These days, Siemens chief executive Joe Kaeser is struggling to sell anything in Germany at all.

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