A Gust of Wind Industry Mergers
Tom Konrad CFA Wind Turbines photo via Bigstock A rising tide may float all boats, but a stiff wind separates the wheat from the chaff. Over the last week, it’s become clearer which wind developers are the wheat, and which are the chaff. Stronger developers with deeper experience are buying projects from their weaker kin. At least two such deals were announced last week. On May 15th, Western Wind Energy (TSXV:WND, OTC:WNDEF) signed a deal to acquire the entire 4,000 MW wind energy development pipeline of private Champlin/GEI Wind Holdings, with near...
Gamesa Blows Siemens a Valentine
by Debra Fiakas CFA Spain’s wind turbine manufacturer, GAMESA Corporation (GTQ1: Berlin; GAM: Madrid; GCTAF: OTC/PK), has been under pressure lately to spread profits over a hefty debt load. The November post entitled The Wind in Spain is Mostly in GAMESA, noted the expanding product line and building customer base. Backlog at the end of September 2015 was 3,034 megawatts, representing a 43% increases over backlog a year ago. Robust sales and higher profit margins have generated strong cash flows and GAMESA has been able to pay down debt. During the first nine months of 2015...
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...
Hither and Yon: Transmission and Biofuels
In the most recent two installments of Energy Tech Stocks' interview with me cover my views on transmission stocks, and biofuel stocks. Readers of AltEnergyStocks know that I am a big fan of electricity transmission, a theme I keep coming back to. You also know that I have a very ambivalent relationship with both ethanol and biodiesel. So I liked Bill's transmission article, but I just wasn't able to convey to him the subtleties of how I feel about biofuels. But he got one thing right: the owners of biofuel feedstock are likely going to be the biggest winners....
China Plans Aggressive Renewables Deployment But Falling Incentives
Doug Young Lofty targets contained in a new report show that China intends to push ahead with ambitious plans to build up its renewable energy sector. But perhaps the most interesting thing about this new report is word that Beijing finally intends to sharply reduce the inflated state-set fees now paid for solar and wind-produced power, in one of the sharpest indicators that it expects the industry to stop depending on government support and become commercially viable on its own. Such state support through a wide array of measures, which also include export credits and low-interest loans,...
California Approves Renewal of Wind Farm Permits
The Alameda County Board of Supervisors approved renewal permits held by wind power companies like FPL Group Inc (FPL), and other wind generators to produce electricity at the 584-megawatt Altamont Pass wind farm, one of the world's largest wind energy centers. One key stipulation for the renewal is that the wind power companies need to replace over 5,000 windmills over the next 13 years with 500 more efficient turbines with high blades that spin above the birds' flight paths. This may seem like a win for the wind farm utilities, but it comes with a price....
Rarer Rare Earths Are Not Going To Sink The Wind Power Sector
Charles Morand Once the electric and plug-in hybrid vehicle frenzy fizzles out, as cleantech frenzies typically do when reality comes knocking (i.e. corn ethanol and solar PV), the next hot thing to hit the world of alternative energy investing could very well be rare earths, or the lack thereof. Rare earth metals are used in a number of technologies, most importantly for alt energy investors in NiMH HEV batteries and in permanent magnets for wind turbine generators and electric motors (made with the element neodymium). This article, as its name indicates, will focus on the wind sector. ...
ENDESA Completes Construction of the Fonsagrada-Punago Wind Power Complex with Installed Capacity of 75.9...
Spanish Energy producer ENDESA (ELE) will have 75.9 MW of additional wind power in Galicia, now that its subsidiary, ECYR, (ENDESA Cogeneracion y Renovables) has completed construction of the Fonsagrada-Punago wind power complex in the Province of Lugo. ENDESA currently has operative installed wind energy capacity totalling 999 MW, with an additional 163 MW under construction, giving it a national market share of 16.6 %. Year to date, the Company has brought 4 wind parks into operation, representing 77 MW, while it has commenced construction on 7 new farms, which will add 163 MW to current installed capacity....
Rapidly Growing Alternative Energy Companies
The last post highlighted several companies in the alternative energy, conservation and environment technology fields that have delivered exceptional price performance over the last year. Prospects for growth in sales or earnings appeared to be key drivers of the price movement. It makes sense to seek indicators of growth as cues for those companies that may become tomorrow’s price movers.
Crystal Equity Research’s novel alternative energy indices were a good place to go on a ‘quest for growth.’
Beach Boys Index - Biodiesel
The two analysts who publish estimates for Renewable Energy Group (REGI: Nasdaq)apparently expect a surge in growth in the current year followed by a leveling...
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.
On The Economics Of Wind Power
What is a good indicator of whether something is "hot"? When the top weekly in the world runs at least one article about it in every edition it publishes. That is what has been happening with The Economist and alternative energy over the past few months. This week's piece was dedicated to the economics of wind power. Citing studies conducted in the Netherlands and Denmark, two wind power markets that are comparatively more developed than most North American markets (barring maybe Texas), the piece argues that, once a significant part of its initial costs have been paid off,...
New Wind ETF FAN Cools Off Sunburned Portfolios
Update:You can find a comparison of FAN with PWND. a more recent wind ETF here. Since I last covered clean energy mutual funds and ETFs, the sector has seen the launch of two solar ETFs (KWT the Market Vectors Solar Energy ETF from VanEck, and TAN, the Claymore/MAC Global Solar Energy ETF.) Continuing in the tradition of cute ticker symbols, First Trust's new global wind energy ETF is FAN. I recommend that investors stay away from the (very expensive) green energy mutual funds, and invest either in one of the ETFs, or if they have...
Ming Yang To Build 300 GW Chinese Wind Farm
Doug Young Wind power company Ming Yang (NYSE: MY) became China’s latest new energy equipment maker to dip its toe into project finance and development last week, when it announced a new plan for a massive wind farm project in Jiangsu province. Its announcement follows similar moves by many of its peers from the solar sector, and comes as Beijing embarks on a broader plan to clean up China’s air through initiatives like clean energy development. Plans like Ming Yang’s will certainly help China to meet its ambitious goals; but they also carry a huge burden and...
Tax Credit to be Extended to Geothermal Energy
The Production Tax Credit (PTC) a critical factor in stimulating the growth of the US wind industry is very likely to be expanded to include geothermal energy as part of the JOBS tax package (H.R. 4520, the "American Jobs Creation Act of 2004") just approved by a Congressional Conference Committee.
Western Wind Energy Executes a 120 MW Power Purchase Agreement with Southern California Edison
Western Wind Energy (WND.V) is pleased to announce the execution of a formal power purchase agreement with the Southern California Edison Company ("Edison") for the procurement by Edison, from the Company, of up to 120 megawatts of wind powered electrical generation. The agreement is for a period of 20 years. The location of the wind energy facilities will be the famous Tehachapi Pass Wind Park. Tehachapi Pass is the site to over 4,600 wind turbine generators delivering over 1.4 trillion watt hours of energy from 670 megawatts of name-plate capacity.
ENDESA Starts up Its Biggest Wind Farm Complex in Spain
The Carballeira wind farm, constructed by ENDESA (ELE) subsidiary, Endesa Cogeneracion y Renovables (ECYR), has been connected to the grid. This completes the construction of the group's largest wind farm complex, which also includes the Bustelo and Faladoira plants, located in the area of As Pontes (A Coruna) and Xermade (Lugo). The wind farm complex has total installed capacity of 161 MW and is connected to the grid through via the Tesouro substation in As Pontes. The Carballeira wind farm, the last to be completed, has installed capacity of 24.42 MW, with 37 660kW wind turbines expected to...
