Germany's wind energy industry is expecting a decrease in new orders following the release of a survey by labor unions. According to this survey, published on Monday, less than 20% of labor council members expect an increase in orders in 2026, while this figure was nearly 60% last year.
Decrease in Capacity Utilization in the Next Two Years
The IG Metall Küste labor union, which represents workers in northern Germany, has also predicted that capacity utilization in companies will decline in the next two years. According to this survey, capacity utilization is currently at a high level of 95%, showing a four percent increase compared to last year.
This survey was conducted by the consulting firm WMP Consult, and members of the labor council from 34 companies operating in coastal and offshore sectors participated. The IG Metall union has stated that approximately 27,700 employees are employed in these companies.
Factors Influencing Changes in Market Sentiment
IG Metall has identified Germany's Minister of Economy, Katharina Reiche, as one of the influential factors affecting changes in market sentiment. Daniel Friedrich, the regional manager of the union, added that the results of this survey are seen as a warning to the federal government, indicating threats of reduced orders and job losses in the near future.
The German government approved reforms to the Renewable Energy Sources Act and the grid connection package at the end of July. These laws are designed to reduce government subsidies and consequently lower electricity costs. One point of contention in these laws is that partial compensation in case of the grid's inability to absorb excess electricity from sources like wind farms will be reduced.
These changes in government policies and economic factors could have profound impacts on the future of Germany's wind energy industry. If new orders significantly decrease, this may lead to reduced production and ultimately workforce adjustments.
