GE to cut 12,000 jobs in power business revamp
GE to cut 12,000 jobs in power business revamp
The US company launched the cuts to save $1 billion in 2018, saying it expected dwindling demand for fossil fuel power plants to continue.
“Traditional power markets including gas and coal have softened,” GE said.
Rumors of sweeping job cuts were confirmed by labor union sources on Wednesday, with staff in Switzerland and Germany among those badly hit.
“This decision was painful but necessary for GE Power to respond to the disruption in the power market, which is driving significantly lower volumes in products and services,” said Russell Stokes, head of GE Power.
“Power will remain a work in progress in 2018. We expect market challenges to continue, but this plan will position us for 2019 and beyond.”
New GE Chief Executive John Flannery last month outlined plans to shrink GE’s sprawling empire of businesses built up by predecessors Jeff Immelt and Jack Welch, whose strategy was based on spreading risk across a broad range of industries.
GE has previously said it would exit its lighting, transportation, industrial solutions and electrical grid businesses.
It also plans to ditch its 62.5-percent stake in oilfield services company Baker Hughes.
In Thursday’s layoffs, nearly a third of the company’s 4,500-strong Swiss workforce could be cut, while 16 percent of staff in Germany are also likely to be axed.
In Britain, about 1,100 positions will be affected, the company said.
GE employed 295,000 people worldwide at the end of 2016, according to the company website.
GE said it had begun talks with labor leaders about the steps.
Union leaders in Germany reacted angrily to the job cuts.
“The announcement by GE that it wants to cut thousands of jobs across Europe is neither strategically nor economically justifiable, and serves only to maximize short-term profit for shareholders,” said Klaus Stein, the representative of the IG Metall Union at GE’s plant in Mannheim.
“We are not going to accept this, and we will fight ... to preserve jobs.”
Demand for new thermal power plants dramatically dropped in all rich countries, GE said, while traditional utility customers have reduced their investments due to market deterioration and uncertainty about future climate policy measures.
Hardly any new power station projects had been commissioned in Germany in recent years, GE said. Heightened Asian competition had also increased price pressures.
GE rival Siemens is cutting about 6,900 jobs, or close to 2 percent of its global workforce, mainly at its power and gas division, which has been hit by the rapid growth of renewables.
Bangladesh inches toward green power goal
DHAKA: Bangladesh’s electricity generation from renewable sources has passed the 5 percent mark with the opening of a major new solar plant — boosting hopes the country might meet its goal of getting 10 percent of power from renewables by 2020, experts said.
The new 28 megawatt solar power plant in Cox’s Bazar District is the largest yet opened in the country, following the earlier construction of a 3 MW plant.
The solar plants come on top of the widespread use of solar home systems in the low-lying country, considered one of those most vulnerable to climate change impacts.
Currently about 5.2 million small-scale solar home systems provide electricity to almost 12 percent of Bangladesh’s 160 million people, Dipal C. Barua, president of the Bangladesh Solar and Renewable Energy Association, told the Thomson Reuters Foundation.
He said that accelerating construction of solar power facilities “will build confidence among future investors.”
The new 116-acre solar park will supply enough electricity to meet about 80 percent of power demand in the Teknaf sub-district where it is located, said Mahmudul Hasan, chief financial officer for Joules Power.
That area has about 300,000 power users, though little in the way of industrial or large commercial users, he said.
Nuher Latif Khan, managing director of Technaf Solartech Energy, part of Joules Power that owns the plant, said it had begun operations ahead of schedule.
In Bangladesh, “the future of solar power is very fantastic,” he said.
Khan said the solar park can produce up to 28 MW of solar electricity at peak capacity and has contracted to provide 20 MW to the government grid.
Barua said several other large solar plants are in the pipeline in Bangladesh, after receiving government approval, with a few at advanced stages of construction.
While solar plants need a large amount of initial investment to set up, he said, they have small operational costs afterward, unlike plants that need ongoing sources of coal or other fossil fuels.
The government has supported construction of rooftop solar plants on factories and other commercial buildings, he said, with some facilities on large plants expected to generate a megawatt or more each. With such solar plants, thousands of factories in Bangladesh should be able to meet their own electricity needs, and contribute surplus power to the national grid.
“I think one day we will see every building has a rooftop solar power system,” Barua said.
However, finding available land to set up ground-level solar plants is a major challenge in densely populated Bangladesh, he said.
Sheikh Reaz Ahmed, director of the Sustainable and Renewable Energy Development Authority (SREDA), said the country’s 2008 renewable energy policy calls for generating 10 percent of electricity from renewables by 2020. With the country expected to generate 20,000 MW of electricity in total by the date, renewables would have to reach 2,000 MW to hit that target, he said.
So far Bangladesh generates just over 530 MW from renewables, nearly half of that from hydropower plants, he said. But the country is set to put online another 600 MW of renewable power in 2019 alone, he said, with another 1,100 MW rolled out in 2020 and 2021.
Not all construction is progressing smoothly, however, with some plants tied up in problems with land acquisition and other issues.
Meanwhile, energy generation from fossil fuels also is rising.
Last year, Bangladesh approved a proposal to construct 10 new oil-fired power plants, capable of generating 1,800 MW of electricity.
In January, construction also began on a 1,200 MW coal-fired power plant in Cox’s Bazar, funded by the Japan International Cooperation Agency.
That means boosting Bangladesh’s percentage of renewable energy above 10 percent won’t be easy, as “each year total power generation from traditional sources will go up” too, Ahmed said.