WTG | Green World Investor

Renewable Energy Jobs become Less Attractive with Crashing Profits and Stocks

17 Feb, 2012

Renewable Energy,Solar Energy,Wind Energy

Renewable Energy Industry is going through some of the toughest times yet with profits and share prices of Green Companies crashing. 2011 was a horrendous year with the biggest solar company by value First Solar being the worst performer in S&P 500. Many of the biggest wind and solar companies were mired in red ink as competition and oversupply from China led to green indicies falling by more than 50% . Many of the biggest companies collapsed and many others are on lifeline.

Another Brutal Year for Solar and Wind Stocks in Offing Despite Growing Demand

1 Feb, 2012

Solar Energy,Wind Energy

Solar and Wind Stocks have been massacred in 2011 mainly due to the following reasons

1) Chinese oversupply which is outcome of its massive industrial overcapacity and investment. This has decimated wind and solar companies in the West while also leading to margins and profits collapsing
2) Commoditazation of Technology and Erosion of Entry Barriers

3) Massive and Irrational Subsidies by Asian countries to support Green Industry

Goldwind Wins 13 Wind Contracts in America as Chinese Extend Global Leadership, More Trouble for Vestas, GE

16 Jan, 2012

China,Wind Energy

Xinjiang Goldwind Science and Technology Co (Goldwind) is the 2nd biggest Chinese wind turbine producer and amongst the top 5 wind turbine companies in the world. Goldwind stock has been punished alongwith other Chinese wind turbine stocks as a fierce price war in the Chinese market has led to nosediving margins and revenues. There is massive overcapacity in the Chinese wind market as there are around 100 odd producers of wind turbines with 7 out of the 15 top global wind turbine makers. Chinese Government policies have been changed to weed out the smaller inefficient wind turbine makers, however the competition still remains quite high just like the Solar Panel Industry.

How to Play 25 GW Chinese Annual Wind Capacity Increase for 38 Years – Sinovel and Goldwind

6 Jan, 2012

China,Wind Energy

China adds around 100 GW of Electric Power Capacity each year to meet the growing energy demands of its population.Most of it is thermal power which is becoming costlier besides the dangerous disadvantages of coal.China has been trying to increase its hydro and nuclear power capacity,but nuclear energy has recived a setback with Fukushima.Solar Power in China is also increasing but it will take time as well to satisfy the electricity deficit.China is already the largest wind power market in the world installing almost 50% of the wind capacity in 2010.It intends to keep up the furious pace of wind turbine installations at around 25 GW per year for the next 35 years to reach 1000 GW by 2050.China already has around 7 of the top 15 wind turbine producers.However a vicious price war has thrown a lot of the wind producers into bankruptcy.

Vestas faces Death Knell/ Consolidation aka First Solar from Price War by Chinese Wind Turbine Producers

5 Jan, 2012

Vestas,Wind Energy

Chinese Wind Turbine Companies have unleashed a global price war in which Western producers are unable to compete.While Solar Panel producers in the West are dying like flies,Western WTG Makers too face survival questions.Vestas which is the world’s biggest turbine company in terms of installations announced another revenue shortfall for the nth time in the last couple of years.The company has already restructed ,reduce workforce etc etc.However the price competition from the Asian companies is too severe and too sustained for Vestas to surive too long.Like First Solar,Vestas seems a likely candidate for takeover by one of the big industrial conglomerates.It has become too tough for a renewable energy company in the West to survive on their own.

Chinese Wind Tower Companies face Dumping Danger after Solar Panel Makers

3 Jan, 2012

China,USA,Wind Energy

Chinese Solar Panel Producers have become a famous target of an anti dumping petition brought on by Solarworld and other companies.Though US Solar Installers have opposed the move as it will increase the solar panel prices in US,ITC has gone ahead with the investigation.Though the charges of subsidies and efficiency can be debated,the fact remains that US Solar Panel Producers can’t compete with Chinese Solar Panles.Massive industrial overcapacity in China has made the prices of products very cheap and made it difficult for Western producers to compete in most areas such as Chemical,Renewable Energy,Textiles etc.The Chinese win because of their low interest rates,cheap labor,free land,massive government support.