GE restructures renewables business to include solar, storage
- General Electric (GE) announced yesterday it is restructuring its renewable energy business, moving its hybrid renewables and grid solutions work, which includes solar and storage, into the same division that develops its wind power and hydro offerings.
- The company has recently faced headwinds, but says as global demand for renewable power generation and grid edge technologies increases, those changes will help it improve speed and competitiveness.
- Once viewed as a bellwether company, GE has seen its share price tumble amid industry changes and difficulties with its newest gas turbines. Company shares jumped this morning, however, after GE saw aviation, healthcare and oil services profits rise, beating analysts' Q4 projections.
GE's bid to reposition itself in the renewables space picked up steam yesterday when it announced a simplified management structure for the division, aimed at making the company more nimble and responsive.
The restructuring calls for moving GE's grid and hybrid renewables work out of its fossil fuel-focused power division and into its renewable energy business, complementing the company's existing onshore wind, offshore wind, LM Wind Power and hydro offerings.
LM Wind, which GE acquired in 2017, manufactures wind turbine blades.
GE also said it will be streamlining its onshore wind structure, "eliminating its headquarters layer and elevating its current regional teams ... to improve competitiveness, speed, customer focus, and local execution in the Onshore Wind business."
"This strategic realignment positions GE to lead in the fast-growing renewable energy market," GE Chairman and CEO Lawrence Culp, Jr. said in a statement.
GE Renewable Energy is headed by CEO Jerome Pecresse. The expanded renewable energy business is part of the company's energy-related portfolio, which also includes a newly-created Gas Power business and GE's Power portfolio, which provides steam, nuclear and power conversion offerings.
While the oil division reaped increased profits in Q4, the company is still preparing to spin off that part, along with its health care division. GE announced last year its intention to narrow its focus to a trio of core areas: renewables, power and aviation.
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