The Impact of the Recession on the Wind Power Industry

An Investigation Study based on a three years data from the largest Wind Energy developers and investors in Greece (07-06-2015)

The huge decline in renewable energy market activity is related, not only to theρ recession, but also to the growing uncertainties. Regulatory uncertainties related to climate policy legislation and energy legislation. Economic uncertainties linked to funds, government incentives, taxation, future prices , power agreements, etc. Geopolitical instabilities linked to fuel supply, supply chain, the role of transit countries, imports and exports. The future prospects for the Greek economy seem still somewhat unclear with a considerable degree of pessimism about the longer term.

Investments in construction (Gross Fixed Capital Formation Residential & Non Residential) are in a free fall, registering a 62.7% cumulative decrease (in 2005 prices) over the period 2007-2014, according to the latest EU Commission estimates. This fact reflects the huge decrease in investments, amounting to 71.2% cumulatively over the same period. Indeed, the recession of the Greek economy is often regarded as being different from previous recessions in other countries because of the impact of three factors:

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Most wind power services companies seem to be applying many aspects of a retrenchment approach to business strategy (e.g. reduced fixed costs, narrower product offerings, reduced staffing) but there are also some aspects of an investment approach which can be observed. However, the potential for these investment approaches is conditioned by concerns about getting access to capital finance.

Both in terms of liquidity support and access to capital finance, there are concerns about the attitude of Greek banks in relation to small to medium businesses.

Companies have identified several managerial areas where they felt the robustness and quality of the approaches being applied had been allowed to decline in recent years. As a consequence of the challenges of a recession, urgent improvements have had to be or need to be made.

For more information please contact Stavros Thomas
Tel: +30 (0) 2102711221, +45 (0) 50361975
Mob:+30(0) 6976001665