A Harsh Winter for Sinovel and China’s Wind Industry

By Lou Schwartz The Year of the Dragon has gotten off to an inauspicious start for the Chinese wind industry and in particular, Sinovel Wind Group Co. (Shanghai:601558, a.k.a. Sinovel), China's leading wind turbine manufacturer. In early February, with the official end to the “Spring Festival” only days away, Sinovel reported decidedly chilly preliminary estimates of its FY2011 performance, confirming that Sinovel and indeed the whole Chinese wind industry had, in the words of one Chinese wind industry insider “entered a winter that would be hard to endure”. Sinovel estimated that its net income for FY2011 declined by...

Offshore Wind Power: Penny Foolish, Dollar Wise

Tom Konrad CFA Image via Wikipedia Sticker Shock As I discussed in my article on investing in offshore wind power, Nstar (NYSE:NST) recently agreed to buy 27.5% of Cape Wind's 420MW planned output. Since National Grid (NYSE:NGG) has had a power purchase agreement (PPA) to buy 50% of the farm's output since 2010, Cape Wind now has enough capacity contracted to raise money for construction. The Nstar PPA has yet to be negotiated, but prices the PPA...

Hydrogenics and PEI Energy Corporation Partner to Develop Prince Edward Island Wind-Hydrogen Village Project

Hydrogenics Corp (HYGS) announced that Hydrogenics and Prince Edward Island Energy Corporation will lead a consortium of industry and government partners to develop Canada's first wind-hydrogen village demonstration - the Prince Edward Island (PEI) Wind-Hydrogen Village Project. This multi-faceted initiative will demonstrate, in real-life and in real-time, how wind energy and hydrogen technologies can work together to offer clean and sustainable energy solutions across a wide range of applications.

Opposite Day Blows Wind Tower Stocks Offshore

Tom Konrad CFA Offshore Wind Farm photo via Bigstock Wind tower stocks having opposite day, or rather opposite week. When US-based wind power companies won a preliminary injunction to impose countervailing duties  in a trade dispute against China, their stocks fell.  They have continued to fall for the four trading days since the announcement.   In fact, as the chart and table below show, wind tower stocks Trinity Industries (NYSE:TRN) and Broadwind (NASD:BWEN, red) have fallen more than the wind industry stocks as a whole (NYSE:FAN, green) and Siemens AG (NYSE:SI), the German energy...

Endesa Completes a New 78.4 MW Wind Power Complex in Tarifa -Cadiz-

ENDESA (ELE) will have another 78.4 MW of new wind power capacity in Andalusia once subsidiary Endesa Cogeneracion y Renovables (ECYR) completes its new wind complex in Tarifa, Cadiz province, comprising the five wind farms of La Manga, Rio Almodovar, El Ruedo, El Gallego and Cortijo de Iruelas. The complex is wholly contained in the town of Tarifa, and has 98 wind turbines: 42 Made AE-56 and the other 56 Made AE-59, both designs being 60 metres tall with unit generating capacity of 800 kV. The complex required an investment of Euro 75 million.

Where’s Western Wind Energy’s Tax Grant?

Tom Konrad CFA  On March 22, Western Wind Energy (TSX-V:WND, OTC:WNDEF) applied for a $90,556,707 tax-free 1603 grant from the US Treasury on behalf of the completed 120MW Windstar project.  The press release stated that the grant is subject to approval by the Treasury and payable within sixty days. The Windstar Wind Farm. Photo credit: Western Wind Energy It’s now more than three months later, and no tax grant.  The stock is down 24% since May 22, when the grant was expected, but management remains confident they will get...

Grid-Based Energy Storage; Notes, Questions and Heresies from Storage Week

John Petersen Last week I had the pleasure of participating as a panelist in Infocast’s Storage Week and attending four days of presentations by industry executives, national thought leaders and policymakers. While most of the presentations were too detailed and specific for a blog about energy storage stocks, there were a few high-level discussions that may be interesting to readers and while I'll never qualify as a journalist I can at least share some of the thoughts I jotted down. Storage for Integration of Renewables Two of the most important presentations came from Dr....

Scottish Power Plc Receives Approval for Glasgow Windfarm

Scottish Power plc (SPI) was granted final planning approval to construct Europe's largest on-shore windfarm, the 322MW Whitelee project south of Glasgow. The 140 turbine project would provide enough green energy to power 200,000 homes. Scottish Power is currently the largest provider of wind generated electricity in the United Kingdom.

Offshore Wind A Big Part Of Why GE Wants Alstom

Who's the Energy Alpha Dog? GE or Siemens? By Jeff Siegel General Electric (NYSE:GE) wants to acquire one of the largest companies in France, and it could get what it wants if Germany doesn't get in the way. Alstom SA (AOMFF), the target of GE's desires, is a French energy and transportation company with a market value of approximately $11.5 billion. It deals in hydroelectric and nuclear power, environmental control systems, wind turbines and battery storage, as well as trains and rail infrastructure. It's a huge company, and GE could spend as much as $13 billion to...

Investors Expect Rapid Growth At Pattern Energy Group

Tom Konrad CFA Pattern Energy's Gulf Wind Farm in Armstrong, Texas Disclosure: Long BEP. Pattern Energy Group (NASD:PEGI, TSX:PEG) completed a very successful Initial Public Offering (IPO) on the Nasdaq and Toronto stock exchanges on September 27th.  Not only did the shares price at $22, near the top of the expected range, but the underwriters exercised their full over allotment option to purchase 2.4 million shares in addition to the initial 16 million offered.  Total proceeds from the offering were $404.8 million.  Most of the proceeds went to Pattern Energy Group, LP (PEGLP) in consideration for a...

Oil & Alt Energy Redux

Charles Morand Last week, I conducted an analysis showing the lack of evidence supporting claims that oil and alt energy returns are strongly correlated (claims that sometimes come from outfits as reputable as Bank of America Merrill Lynch).     I don't want to belabor this topic but I thought I would post the results of another, similar analysis I conducted following comments I received on how to improve the first one. In a nutshell, the comments suggested I do the following: 1) Look at daily correlations or even smaller periods, as "common knowledge" market...

Xcel Energy Gets Approval to Add Renewable Energy in Colorado

Xcel Energy (XEL) received approval from the Colorado Public Utilities Commission (CPUC) on Wednesday that could triple the company's wind power capacity in Colorado by 2007. The CPUC approved Xcel Energy's proposal to acquire up to 500 megawatts (MW) of renewable energy resources, primarily wind, through an early competitive bidding process. This will allow the company to take advantage of any short-term renewal of the federal production tax credit (PTC) for wind energy, currently under consideration by Congress. The company also will study the impact that additional renewable resources will have on system reliability, operation, cost and transmission....

Wind Energy ETFs: A Comparison

Three weeks ago, I wrote on the year ahead for the US wind sector and said I would analyze the two new wind ETFs now available to US investors: the First Trust ISE Global Wind Energy Index Fund (FAN) and the PowerShares Global Wind Energy Portfolio (PWND). While I don't currently have a position in either ETF as I expect headwinds in the US (no pun intended) to place downward pressure on some of the global wind stocks in the next few months (the US accounted for 27% of global installed capacity in '07), I still intend to...

How to Invest in the Pickens Plan

A friend recently asked me how to invest in the Pickens Plan.  I named a stock (see below). He then surprised me by saying "You are the fifth person I've asked, and no one else knew how.  Several said it could not be done." You can invest in T. Boone Pickens's plan.  Here's how: The Plan T. Boone's plan is both simple and audacious.   We will build wind farms all over the Great Plains. Build the necessary transmission to get that electricity to cities, displacing natural gas used in electricity generation for the use in automobiles.   This will...

Renewable Energy: a Better Bribe

Bribing and Pressuring Fissile Regimes On July 25th, France offered to build a nuclear reactor for Libya to power a water desalinization plant.  Russia is delaying the delivery of  nuclear fuel for Iran's nearly completed Bushehr to help pressure them to comply with UN Security council demands for less secrecy.  South Korea, Japan, China, Russia, and the United States promised to provide 950 thousand tons of oil or equivalent aid to North Korea in return for permanently disabling all its nuclear facilities. I'm not going to argue about whether using energy aid is the best way to influence this...

Book Review: Investment Opportunities for a Low Carbon World (Wind + Solar)

Charles Morand Tom and I recently received complimentary copies of a new book called "Investment Opportunities for a Low Carbon World", edited FTSE Group's Director of Responsible Investment Will Oulton*.  The book is a compendium of articles by 31 different authors broken down into three main categories: (1) environmental and low-carbon technologies; (2) investment approaches, products and markets; and (3) regulation, incentives, investor and company case studies. While Tom will provide a comprehensive review of the book once he's finished reading it in its entirety, I will instead review a few selected chapters over...
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