GE renewable energy gloom brightens as Vernova sees 'significantly better' profit - Recharge
GE renewable energy gloom brightens as Vernova sees 'significantly better' profit | Recharge
GE Vernova reported an improving picture at its renewable energy business as it raised revenue and profits forecasts and reported record orders for the segment.
GE is racing to turnaround the fortunes of the loss-making renewables arm in time for a planned spin-off of Vernova in 2024.
"We're pleased with our progress and momentum but, of course, more remains to be done," CEO Larry Culp said on an earnings call.
The company anticipates that Vernova, which in addition to renewables, includes its conventional thermal power equipment, grid, and energy transition businesses, will lose between $100m and $400m this year.
Related Knowledge Center: ENERGY BASICS: renewables
Renewable energy sources — once the fuel of the future, then practical in specific, narrow applications — are increasingly economic mainstream sources of power generation. Hydropower was long the mainstay of U.S. renewable electricity generation, although wind power surpassed hydro for the first time in 2019, and solar continues its rapid growth. The continued growth of wind and solar, with their fluctuations, is tied in part to improvements in storage technology: batteries.