Wind turbine troubles have sent one stock tumbling. There are fears it could be a much wider issue
A Siemens Gamesa blade factory on the banks of the River Humber in Hull, England on October 11, 2021.
PAUL ELLIS | AFP | Getty Images
Costly failures at wind turbine manufacturer Siemens Gamesa last month sent shares of parent company Siemens Energy tumbling, and analysts are concerned about wider teething problems across the industry.
The German energy giant scrapped its profit guidance in late June, citing a “substantial increase in failure rates of wind turbine components” at its wind division Siemens Gamesa.
Siemens Energy CEO Christian Bruch told journalists on a call Friday that “too much had been swept under the carpet” at Siemens Gamesa and that the quality issues were “more severe than [he] thought possible.”
Siemens Energy stock plunged by around 37% on June 23, while other wind companies also saw shares retreat as investors worried that the problems at Gamesa might be a symptom of a wider issue for the industry.
Nicholas Green, head of EU capital goods and industrial technology at AllianceBernstein, told CNBC that the pace of expansion, and the fact that many components of larger turbines haven’t actually been in use for very long, means there could be inherent risks throughout the sector.
“We have to acknowledge that putting brand new machinery — whether it’s on-shore or even more difficult off-shore wind farms — and the pace of change in that machinery has put us into slightly uncharted territory,” he said.
“Although it’s hard to tell at the moment, my best guess is that this probably actually is an industry-wide issue. It wasn’t that Siemens Gamesa is a bad operator as such, it’s that actually some of the normal protocols and time in use, operational data in use, is relatively limited.”
Siemens Gamesa’s board is now due to conduct an “extended technical review” into the issue, which is expected to incur costs in excess of 1 billion euros ($1.09 billion). The company’s shares have recouped some losses, but remain down over 33% in the last month.
A tough two years
The wind industry has expanded rapidly over the past two decades, lowering costs to rival — and sometimes undercut — those of fossil fuels, while boosting efficiency with ever-bigger turbines and reducing reliance on state subsidies.
“These cost reductions have been achieved with innovations in turbine technology and by pushing the boundaries of engineering,” Christoph Zipf, spokesman for industry body WindEurope, told CNBC via email.
He said that 20 years ago, a typical wind turbine would have 1 million watts of capacity; today, European original equipment manufacturers, or OEMs, are testing 15 MW turbines.
“This means that turbines have become bigger as well, posing challenges to components (quality, materials, longevity). The introduction of competitive auctions has also been a driving factor in this cost reduction,” Zipf added.
The Statistical Review of World Energy report published last week revealed that wind and solar power accounted for 12% of the world’s power generation last year, with wind power output increasing by 13.5%.
The industry was hit hard by the Covid-19 pandemic, as resulting lockdowns depressed industrial activity and reduced global energy demand. The ensuing supply chain problems then hampered OEMs.
These manufacturers have since endured a further shock from soaring inflation and input costs as Russia’s invasion of Ukraine disrupted markets and aggravated supply chain disruptions. WindEurope estimates that the rise in commodity prices has increased the price of wind turbines by up to 40% over the last two years.
“OEMs were sourcing some material from Russia (mostly nickel) and Ukraine (mostly steel). The price of both skyrocketed after the invasion. This comes on top of the challenging inflationary environment all European businesses are operating in (i.e. rising electricity prices, etc.),” Zipf explained.
“A main problem for the OEMs is that not all countries had indexed their renewables auctions. Consequently wind turbine orders were not necessarily indexed to inflation. The time between the order intake and the commissioning of a wind turbine can take up to 18 months (especially when supply of materials is short).”
However, Zipf denied that industry-wide technical failures could be on the horizon, insisting that “the problems at Siemens Gamesa are limited to Siemens Gamesa.”
“Big turbine failures are extremely rare given the number of turbines installed in Europe already. However, the competition in the sector is pushing OEMs to come up with bigger and better turbines at a fast rate, may be faster than in other sectors,” he said.
He also challenged the notion that the industry has entered “uncharted territory,” arguing that the changes in turbine technology have been “incremental and evolutionary.”
“Naturally every new turbine model comes with new challenges, requires rigorous testing and certification. But the European wind industry has overcome all of these challenges and maintained its reputation for delivering highly reliable high-quality turbines,” Zipf said.
Facts and figures
According to ONYX Insight, which monitors wind turbines and tracks over 14,000 across 30 countries, most turbines are designed and certified for 20 years but contain components that will fail during that time due to a “compromise between the cost of the system and reliability.”
“We have been aware for some time that turbine failure rates across the industry can — and should — be more widely understood, given the scale of their potential impact on the overall profitability of projects,” Evgenia Golysheva, vice president of strategy and marketing at ONYX, told CNBC.
“It’s not that they are made badly, but we now have a compromise between the cost of energy and targeted reliability. Everyone who builds, finances and operates wind turbines needs to have a realistic picture of how many failures to expect.”
In turbines built in 2023, more than 40% of gearboxes will need to be replaced after 20 years of project life, according to ONYX, along with over 20% of main bearings and more than 5% of blades.
Across the wind industry, around 65% of operations and maintenance costs are unplanned, according to ONYX. It projects that major corrective spending will rise to $4 billion by 2029.
“The growth of wind installations has been unprecedented, and the industry has had to scale up very quickly with little time to digest it. It’s not a capacity issue, and it’s not new, but it is good that OEMS (who are under pressure from supply chain and from inflation) are bringing this conversation into the public domain,” Golysheva explained.
“It’s a conversation that is overdue, because the underlying issues aren’t going away. For example, wind turbine rotors are getting bigger, the turbines are getting bigger, and the development cycles are short, so it’s crucial to have digital and other diagnostic tools to be able to deal with reliability issues.”
Fossil fuels just hit a record low in the US electricity mix last month, while solar and wind soared to all-time highs, according to fresh data from global energy think tank Ember.
In March 2025, fossil fuels accounted for less than 50% – 49.2% – of electricity generated for the first month on record. This beats the previous monthly record low of 51% set in April 2024.
“This clearly demonstrates the growing role of wind and solar in the US energy system,” said Nicolas Fulghum, senior analyst at global energy think tank Ember. “This is a first signal that the US is approaching a tipping point where clean power takes the lead over fossil generation, and where the importance of coal and gas inevitably starts to fade.”
What this means is that clean energy generated more than half – 50.8% – of US electricity for the first month on record. The record was driven by a surge in wind and solar power, which hit a new high of 24.4% of US electricity in March 2025.
In March 2025, US solar increased an astonishing 37% (+8.3 TWh) compared to March 2024. Wind increased by 12% (+5.7 TWh). Together, wind and solar reached an all-time high, generating 83 TWh of US electricity, 11% higher than the previous record of 75 TWh set in April 2024. Fossil fuel generation fell by 2.5% (-4.3 TWh) compared to March 2024.
The milestone is the result of a long-term decline of fossil generation in the US power sector, with wind and solar growing substantially over the last decade. In March 2015, fossil generation still provided 65% of US electricity generation. Wind and solar generation stood at just 5.7%. Since then, the share of wind and solar power has more than quadrupled.
“Wind and solar power are pushing fossil fuels out of the mix,” said Fulghum. “The reality on the ground is not one of a return to fossil fuels in the US, it’s the continued growth of solar and wind power that will be the dominant driver of electricity generation growth in the US.”
Solar power is set to account for more than half of new generating capacity installed in the US in 2025, with more than a third of new solar panels going to Texas. Solar adoption has exploded in just a decade. In March 2015, solar power accounted for just 1% of US electricity generation. By March 2025, it’s grown to 9.2%.
Last month, Ember published the report “US Electricity 2025,” which covered changes and trends in the US power sector in 2024. Solar was the fastest and largest growing source of electricity in the US in 2024. Wind and solar combined rose to a record 17% of the US electricity mix in 2024, overtaking coal for the first time, which accounted for 15%.
Read more: Made-in-America solar just got a big win in Louisiana
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Lease deals get all the hype, but most people still want to own the car after they’re done making all those payments on it. If that sounds like you, and you’ve been waiting for the interest rates on auto loans to drop, you’re in luck: there are a bunch of great plug-in cars you can buy with 0% financing and at pre-tariff prices this April!
As I was putting this list together, I realized there were plenty of ways for me to present this information. “Best EVs ..?” Too opinion based. “Cheapest EVs ..?” Too much research. “Best deal ..?” That’s usually subjective, but as automakers and dealers rush to raise prices in anticipation of Trump’s tariffs, two brands – Ford and Nissan – stand apart.
In the end, I went with alphabetical order, by make, so you’ll find out more about Ford and Nissan’s approach to the new market reality when you get to them. And, as for which deals are new this month? You’re just gonna have to read the article. Enjoy!
Acura ZDX
Manufactured in Spring Hill, Tennessee, the 2024 Acura ZDX uses a GM Ultium battery and drive motors, but the styling, interior, and infotainment software are all Honda. That means you’ll get a solidly-built EV with GM levels of parts support and Honda levels of fit, finish, and quality control. All that plus Apple CarPlay and (through April 30th) 0% financing for up to 72 months makes the ZDX one the best sporty crossover values in the business.
Chevy Blazer, Equinox EVs
Both the Chevy Blazer EV and Equinox EV are manufactured at GM’s Ramos Arizpe plant in Coahuila, Mexico, and each offers their own takes on the five-passenger family SUV. Despite any incoming tariffs, the crossovers you’ll find on dealer lots today still represent a solid value, with the cost of base model Equinox LT FWD models with 319 miles of EPA-rated range dropping to just $27,500 after you apply the $7,500 Federal tax credit (for now, still a thing).
Chrysler Pacifica PHEV
When the plug-in hybrid version of the Chrysler Pacifica minivan first went on sale all the way back in 2016, it seemed to imply that the old Chrysler Corporation was going to race ahead of the other Big Three US carmakers.
That didn’t happen, but the Pacifica is still the king of cupholders, while the van’s stow n’ go seating, and all the other practical, clever details that add up to remind you Chrysler invented these things – and through April 30th, you can get 0% financing for up to 72 months on 2025 MY examples of this made-in-Canada plug-in hybrid and cover up to 32 miles of your daily driving needs on the clean, pure power of electrons.
Ford Mustang Mach-E
As I mentioned at the top of the article, both Ford and Nissan have taken steps to push back against the Trump tariffs – and in Ford’s case, that means big discounts, employee pricing for all, and free chargers for EV buyers.
In addition to employee pricing, 2024 Mustang Mach-Es continue to offer 0% APR financing for up to 72 months. That offer appears to be stackable with $2,500 in bonus cash, too, and Tesla owners and lessees can also score $1,000 in conquest cash for up to $3,500 off.
GMC HUMMER EV
The biggest of the Ultium-based EVs, these Hamtramck, Michigan-built machines are seriously impressive EVs, with shockingly quick acceleration and on-road handling that seems to defy the laws of physics once you understand that these are, essentially, medium-duty trucks. If you’re a fan of heavy metal (and plastic), you’ll definitely want to stop by your local GMC dealer and give the rugged GMC HUMMER EV a test drive.
Honda Prologue
Manufactured alongside its GM siblings at the Ramos Arizpe plant in Coahuila, Mexico, the hot-selling Honda Prologue pairs GM’s excellent Ultium platform with Honda sensibilities and Apple CarPlay to create a winning combination.
If you’ve been holding off, we’ve got good news: there’s still a few remaining 2024 models in dealer inventory out there. To make room for the 2025 models, Honda is offering 0% APR for up to 72 months on the remaining 2024s.
Click here to find a 0% interest (72 mo.) deal on a 2024 Prologue near you.
Hyundai IONIQ 6
The ultra-efficient Hyundai IONIQ 6 is one of the most compelling Model 3 competitors out there – but that could change if the Korean-built sedan gets hit with heavy tariffs. To make sure that doesn’t happen, Hyundai is investing tens of billions of dollars into a US manufacturing base, creating new American jobs and ensuring (kinda) that it can continue to deliver real value to its customers.
The fast-charging IONIQ 6 offers up to 342 miles of range on its most efficient version, while even the shortest range models offer 220 miles of range. Through April 30th, Hyundai is offering a rare 0% interest deal on remaining 2024 examples of its slippery sedan for up to 48 months.
All the Kia EVs
Kia has something for just about everyone in its EV range, from the fun, compact, and underrated Niro EV to the practical three-row EV9 to the supercar-baiting performance of the Kia EV6 – a car that made its global debut on a drag strip running alongside a Lamborghini, a Porsche, and an AMG Mercedes GT.
Through April 30th, you can get 0% interest on just about every new EV you’ll find on your Kia dealer’s lot (minus 2025 Kia EV6 models). Click the links below to find yours.
Mitsubishi Outlander PHEV
One of the first three-row plugin cars to hit the market, Mitsubishi’s Outlander PHEV has always presented a strong value proposition with up to 38 miles of electric range from its 20 kWh li-ion battery and room for seven (in a pinch), making it a great “lily pad” vehicle for suburban families who want to drive electric but still worry about being able to find a charging station when they need one.
That might change when the tariffs take full effect, however – so if you’re looking for an affordable 7-passenger plug-in with a great safety rating at a reasonably affordable price, act fast.
Nissan Ariya
I’ve already said that the Nissan Ariya didn’t get a fair shake. If you click that link, you’ll read about a car that offers solid driving dynamics, innovative interior design, and all the practicality that makes five-passenger crossovers the must-haves they’ve become for most families. Now, Nissan is slashing prices across the line as their competitors are raising theirs, making the case for the Ariya even stronger than before.
With great discounts available at participating dealers, Supercharger access, and 0% interest from Nissan for up to 72 months on both 2024 and 25 MY Ariya EVs.
Toyota bZ4X
Built in Toyota City, Japan, the bZ4X EV is a capable, dependable crossover with room for five and Toyota’s reputation for reliability and longevity to boot. With 0% financing and big discounts on both 2024 and 2025 models, the bZ4X might be the best deal on your local Toyota dealer’s lot.
Volkswagen ID.4
One of the most popular legacy EVs, the ID.4 offers Volkswagen build quality and (for 2024) a Chat-GPT enabled interface. To keep ID.4 sales rolling, VW dealers are getting aggressive with discounts, making this fast-charging, 291 mile EPA-rated range, 5-star safety rated EV a value proposition that’s tough to beat.
This month, get a Volkswagen ID.4 fresh from the company’s Chattanooga, Tennessee assembly plant with 0% financing for up to 72 months plus a $5,000 customer cash bonus on remaining 2024 models to stack with it.
Disclaimer: the vehicle models and financing deals above were sourced from CarsDirect, CarEdge, CarFax, USNews, and (where mentioned) the OEM websites – and were current as of 03APR2025. These deals may not be available in every market, with every discount, or for every buyer (the standard “with approved credit” fine print should be considered implied). Check with your local dealer(s) for more information.
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Environment
Why OPEC+ is accelerating oil production as prices are tanking and tariffs hammer markets
The Phillips 66 Company’s Los Angeles Refinery in California.
Bing Guan | Reuters
The oil price outlook is being hit with more bearish forecasts on the back of U.S. President Donald Trump’s sweeping and market-hammering tariff announcements. Businesses and investors worry that a trade war and lower global growth lies ahead.
Goldman Sachs on Thursday reduced its December 2025 forecasts for global and U.S. benchmarks Brent crude and WTI by $5 to $66 and $62 a barrel, respectively, “because the two key downside risks we have flagged are realizing, namely tariff escalation and somewhat higher OPEC+ supply.”
The bank also cut its forecasts for the oil benchmarks in 2025 and 2026, adding that “we no longer forecast a price range, because price volatility is likely to stay elevated on higher recession risk.” Analysts at S&P Global Market Intelligence predict that in a worst-case scenario, global oil demand growth could be slashed by 500,000 barrels per day.
JPMorgan, for its part, raised its recession odds for the global economy to 60% for this year, up from a previous forecast of 40%.
Markets were therefore stunned when OPEC, which produces about 40% of the world’s crude oil — along with its non-OPEC allies that together comprise OPEC+ — chose not only to go ahead with its previously held plans to increase oil production, but also to nearly triple the expected increase figure.
Eight key OPEC+ producers on Thursday agreed to raise combined crude oil output by 411,000 barrels per day, speeding up the pace of their scheduled hikes and pushing down oil prices. The group — Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman — was widely expected to implement an increase of just under 140,000 barrels per day next month.
The news pushed oil prices 6% lower.
OPEC+ bullishness and appeasing Trump
Several factors underpin the oil-producing alliance’s decision. One is that the group is bullish on oil demand later in the year, putting it firmly in the minority as investor outlooks sour and fears of a global slowdown worsen.
The eight OPEC+ members behind the production decision cited “the continuing healthy market fundamentals and the positive market outlook” in their statement Thursday, saying that “this measure will provide an opportunity for the participating countries to accelerate their compensation.”
The statement added that “the gradual increases may be paused or reversed subject to evolving market conditions.”
Another likely reason for the group’s move has to do with another T-word: the man in the White House, who during his first term in office and from the very start of his second, has loudly demanded that the oil producer group pump more crude to help bring down prices for Americans.
“First of all, this is partly about appeasing Trump,” Saul Kavonic, head of energy research at MST Marquee, told CNBC’s Dan Murphy on Friday.
“Trump will be putting pressure on OPEC to reduce oil prices, which reduces global energy prices, to help offset the inflationary impact of his tariffs.”
OPEC officials have denied that the move was made to appease Trump.
Compliance and market share
Meanwhile, as compliance is a major issue for OPEC+ — with countries overproducing crude beyond their quotas, complicating the group’s efforts to control how much supply it allows into the market — the move could be a way to enforce that, according to Helima Croft, head of global commodity strategy and MENA research at RBC Capital Markets.
“We think a desire by the OPEC leadership to send a warning signal to Kazakhstan, Iraq, and even Russia about the cost of continued overproduction underlies the decision.”
Helima Croft
head of global commodity strategy and MENA research at RBC Capital Markets
“We think a desire by the OPEC leadership to send a warning signal to Kazakhstan, Iraq, and even Russia about the cost of continued overproduction underlies the decision,” Croft wrote in a note published Thursday. She referenced the March 2020 oil price war, when Saudi Arabia flooded the market with supply to tank oil prices and forced Russia back into compliance after Moscow initially refused to curb production to help the alliance stabilize prices. The price war caused Brent crude prices to go as low as $15 a barrel.
The production increases are also “an example of OPEC increasing their market share,” Kavonic said, adding that it “ultimately does come at the expense of the United States [shale] patch,” which U.S. producers likely will not be too thrilled about.
What happens next?
OPEC+ appears confident about the market turning a corner in the coming months on the assumption that oil demand will increase in the summer and the tariff wars will be resolved in the coming months, said Nader Itayim, editorial manager at Argus Media.
“These countries are largely comfortable with the $70, $75 per barrel band,” Itayim said.
What comes next depends on the trajectory of the tariffs and a potential trade war. Oil dropping into the $60 range could force pauses or even a reversal in OPEC+ production increase plans, analysts say – although that is likely to be met with resistance from countries like Iraq and Kazakhstan that have long been itching to increase their oil production for their own revenues.
Whatever happens, the group maintains the flexibility to adapt its plans month by month, Itayim noted.
“If things don’t quite go the way they imagine, all it does take, really, is a phone call.”
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