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Lack of Government Support kills Clipper while putting rest of US Wind Industry in a Coma

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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.

Korean Shipbuilders,small Indian companies are also getting into the Wind Energy Market attracted by the lucrative growth possibilities.US companies on the other hand are nowhere to be found except for GE.Just like Solar Companies,even GE is building most of its factories outside the US due to lack of government subsidy and support.China is powering ahead and has a very good chance of stealing the lead in Wind Energy just like Solar Energy.Note a strong domestic industry is very important for companies to grow as can be seen in the case of Vestas where Denmark’s strong wind policies made it the  world leader.Same was the case with Gamesa and India’s Suzlon.US has failed to provide clarity on the 30% cash grant extension beyond 2010 putting wind farm project in limbo.First Wind a pure play wind farm operator failed to get its IPO done despite putting a 24% discount to its initial price.Other operators like John Deere have sold off their wind farms for a bargain given the bad and uncertain future.

UTC Bails Out Clipper – REW

United Technologies Corporation (UTC), a provider of high-technology products and services to building systems and aerospace industries, is to buy the remaining shares in the company at 65 pence (103 cents) a share, Clipper announced on 18 October.In the first half of 2010 Clipper sold only 43 turbines, down from 127 in the same period of last year. In its first-half results announcement Clipper said “the current business circumstances create a material uncertainty that casts significant doubt on the Group’s ability to continue as a going concern.”

U.S. wind power posts slowest quarter since 2007 – Reuters

The U.S. wind power industry had its slowest quarter since 2007 in the just-ended third quarter, as investors turned away from the sector after Congress did not pass a renewable power mandate, an industry group said.

The American Wind Energy Association (AWEA) said U.S. developers added 395 megawatts of electricity capacity at wind farms in the third quarter — the slowest quarter since 2007. Year-to-date installations of 1,634 MW, were down 72 percent versus the same period last year.

PG

Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to greensneha@yahoo.in or call me on +913340606492.

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