By most accounts, there is a strong tailwind behind wind power.
Merrill Lynch in Europe recently published a report predicting that global wind energy capacity will soar at a compound annual growth rate of 22% between now and 2011.
Three of the megatrends Merrill forecasts in this same report:
1. By 2011, the US will be the world’s #1 wind energy market, surpassing current #1, Germany.
2. The global wind energy industry will grow so fast that key component manufacturers will struggle to keep pace.
3. Despite rising demand, there isn’t likely to be a significant number of new market entrants, in large part because of the value buyers place on manufacturers with a proven track record.
It doesn’t take a Nobel-winning economist to realize that if, indeed, demand exceeds supply, and there are few new entrants, there will be some big-time winners among the existing component manufacturers.
The turbine manufacturers Merrill forecasts to be winners and why:
- Siemens AG, a German company — has a strong position in the growing offshore markets (out in oceans).
- Suzlon Energy, an Indian company – has a a considerable home advantage on its turf.
How to invest in these companies:
- Siemens — which is not a “pure play” as it has many different business operations — trades on the New York Stock Exchange (NYSE) under the ticker symbol SI. So, US investors can easily purchase this stock.
- Suzlon — doesn’t trade on a US exchange. It trades on the Indian exchange (NSE), as SUZLON.
Wish I could hook you up with the entire Merrill report, but I’d imagine it’s pricey. You may want to check out my source below as it contains some great articles pertaining to wind and solar energy companies.
Source: Energytechstocks.com
3 Comments
Wind power plants operate at between 20% and 40% of their rated capacity, depending on the local wind resource. In the northeast, where installations are booming, operations are at the low end of that range. This means about a dozen wind farms each with about 60 turbines are required to generate as much electricity as a conventional power plant, about 300 MW. However, wind farms produce no electricity when the wind isn’t blowing, so they have an even lower reliability factor. In Europe, with much more wind energy experience than the the U.S., no conventional power plant has been displaced by wind power. That’s because reliable backup capacity must be maintained, even at a reduced operating level, despite wind power interconnections. In fact, conventional power plants run less efficiently at reduced operating levels, and thus pollute more per unit of energy generated than when operated at maximum capacity. When compared to the land area required, about 10 acres for a conventional plant, at least 5,000 acres for a 60-turbine wind plant, the net benefits and burdens of wind compared to other sources doesn’t look so rosy. All that land is subject to habitat fragmentation, bird and bat mortality, drainage alteration, noise pollution, and visual impacts not all people love.
Gary,
Thanks for the comment — very informative, not to mention well-written. I totally agree with you. I’m a big solar fan, less so wind, for the reasons you mentioned. That said, I try to “occasionally” take my personal opinion out and present some info for the non-like minded people.
Thanks for reading and commenting.
Beth,
What about GE? They are the largest US supplier of turbines, and they are going strong!
Dan