GE’s renewables business sees 4% revenue growth in 2018

General Electric (GE) has reported revenue growth of 4% in its renewable energy sector in 2018, although profitability in the renewables business fell from 2017.

The US-based conglomerate published its latest annual report earlier this week, which revealed that revenue from renewables stood at US$9.5 billion in 2018, with $7 billion from equipment and $2.5 billion in services.

Around $4.3 billion of the firm’s total renewables revenue came from the US market, with Europe the next largest market at $1.9 billion.

The largest single revenue contributor was onshore wind turbines at $8.3 billion, with the remaining $800 million and $400 million from hydropower and offshore wind respectively.

However, GE’s profit from renewables was $300 million last year, a 50% reduction on 2017, with the company pointing to ‘pricing pressure’ and an ‘unfavourable business mix as well as liquidated damages related to partner execution and project delays’.

CEO Lawrence Culp said: “The energy mix continues to shift dramatically, with roughly two-thirds of global capacity additions through 2040 projected to be in renewables.

“GE is determined to lead this transition. We’re making bold bets in clean energy while our turbines and technology allow customers to quickly dispatch more reliable, affordable fuels such as natural gas when they are needed.”

Last month, GE announced it would be moving its grids and renewable hybrids businesses into its  Renewable Energy unit, as it ‘intensifies its focus on renewables’.