11 results found for: us wind industry 2010 ge clipper
Brazil made a lot of headlines when it managed to auction a couple of gigawatts of wind energy capacity at very low prices to wind energy […]
PWND is a good Wind ETF with strong weighting on China and Wind Utilities.Note the center of Wind Energy Manufacturing and Development has shifted towards China from the Western world with almost 50% of the world’s wind power installations happening in China in 2010.8 out of the top 15 Wind Turbine Manufacturers are now from China which makes it very important that Top Wind Energy Investments have a substantial weighting on Chinese Wind stocks.PWND has a good combination of Wind Utilties and Wind Turbine Stocks from China which gives exposure to the biggest wind power market in the world.It has also got a decent investment in top Wind Utilities in Europe which still have the biggest wind farm portfolios in the world.With 30 stocks,it has not over diversified as well with good concentrated holdings in top wind power stocks.While 0.75% expense ratio is slightly high it is not a deal killer.The 2010 and 2011 performance of Wind Energy has been dismal to say the least with the Copenhagen Global Climate Change Meeting going to the dogs in 2009 end.However there remains little alternative to Wind Energy as Coal,Gas and Oil get increasingly scarce,costly and are continuing to pollute the environment.With only $19 million left as the corpus PWND may not continue long,however if it does it might be the best time to invest in a good WInd Energy ETF when the sector is so unloved.PWND is the best Wind Energy ETF and probably the best wind stock investment out there
The Pros of Wind Energy far outweighs the Cons of Wind Power leading to massive amounts of wind power capacity being installed in almost every part of the world.Wind Power already generates majority of the electricity in countries like Denmark and almost 1/5th in countries with proactive renewable energy policies such as Spain,Germany and Portugal.Wind Power has great potential in USA,China and India which are driving the growth of Wind Power in the world.South America particularly Brazil are also showing strong interests in building up wind farms in the country.The recent increase in the price of oil and the dangers of Nuclear Energy further emphasize the importance of Wind Power Energy.
Spain is having difficulties with its fiscal deficit and finding it hard to sustain subsidies for Renewable Energy.The Markets in the West have also saturated themselves in terms of growth rates.Though low cost South Korean and Chinese Wind Turbine Producers have not penetrated the Western Markets yet,they could do so in the future.Gamesa which is a Top 5 Wind Energy Company has faced a turbulent year with the owners selling stakes and the share price taking a huge dive.Gamesa is one of the worst performing Wind Energy Stocks in 2010.Gamesa is looking to restructure its operations and concentrating on the offshore wind market by focusing on higher megawatt turbines.Gamesa is leading a massive Spanish Research Effort to develop a colossal 15 MW Turbine meant for the fast growing offshore wind sector.But this is a long term plan with 2020 set as the target for the complete development of this new Turbine.Meanwhile Gamesa has become the target of takeover speculation by one of the bigger Chinese Wind Turbine players like Sinovel,Goldwind etc.Gamesa has seen its revenue fall by 28% and profits by 71% with Operating Margins of 4-5%.Things don’t look too good for 2011 either though Orders have started ticking up.
Wind Energy Companies are increasingly facing competition from a host of new entrants into the industry.The dominants firms Vestas,Gamesa and Suzlon have seen their stock prices fall steeply due to declining revenues and margins.A number of Giant Industrial Firms have entered the Wind Energy Industry to diversify from the slow growth in their own sectors.Korean Shipbuilders have invested heavily in the Wind Turbine Manufacturing en masse to take advantage of the secular growth of Wind Energy.Chinese companies have risen from virtually nothing 5 years ago to become Top 5 Global Wind Energy Players.Companies like Sinovel,Goldwind,Mingyang Power are now trying to spread their wings outside of China.India’s Wind Energy Industry is comparatively small but it has also seen a number of wind power companies setting up facilities with technology licensed from the West.The slowdown in the Western Markets has led to huge problems for dominant Western firms like Gamesa and Vestas.It has led to painful restructuring for Vestas which has fired thousands of workers from its domestic manufacturing base in Denmark.Gamesa has also seen management and ownership turmoil as WTG Orders have evaporated and its competitive position has eroded.GE,Suzlon,Gamesa and Vestas are all investing in the Chinese market which has grown exponentially in recent times and which is expected to form 50% of the Wind Energy Demand till the next few years.
The US Wind Industry has been facing headwinds since the beginning of 2010 due to a confluence of adverse factors.This has continued till the 3rd quarter of 2010 with AWEA reporting just 395 MW of capacity installation and a 72% fall in wind capacity since the beginning of 2010.This is a drastic fall and the main reason for the Wind Industry falling into a coma is the legislative lethargy of the US Government.Despite lots of noise,no climate change or energy legislation has passed the Congress and Senate leading to the moribund state of the US Wind Industry.Note China and Europe are pressing full throttle on Green Industry Growth with a climate laggard like UK also taking a leadership in the offshore wind industry.China will continue its strong wind growth in 2010 installing around 50% of the overall global capacity.Its Wind Companies like Sinovel,Goldwind and Ming Yang are now trying to penetrate foreign markets while US Wind Turbine makers like Clipper have sold themselves unable to survive independently.
MingYang is the first Chinese Wind Energy Company to list its shares in the American Stock Exchange.There are a number of Chinese Solar Companies like Renesola,Trina Solar,Suntech etc which are traded in the USA but no Wind Energy Plays.In fact the number of Wind Companies trading on US Exchanges is almost non-existent.Clipper and Broadwind are hardly big players in the global market and provide little direct exposure to Wind Energy for US investors.MingYang is issuing 25 million ADS at a range of $14-16 share diluting around 20% of the company and giving it a market cap of roughly around $1750 million.The proceeds will be used in capacity expansion and R&D mostly.MingYang is the only significant non-state owned Chinese Wind Energy Company with a 2009 marketshare of around 4%.The Company has a very short history installing its first Wind Turbine just 2 years ago and has seen an exponential growth riding on the incredible Wind Industry Growth in China.Here are the advantages and disadvantages of the Company.
Renewable Energy The potential for UK feed-in tariff changes– PV-Tech Gamesa shares slide after Del Pinos sell stake – Reuters EDF, Constellation Said in Talks to […]