While Solar Energy is a new kid on the block,Wind Energy has been growing very strongly in the past Decade.Italy was rethinking its Renewable Energy Certificate (REC) Scheme to remove price guarantees but at the last minute it changed its mind.Wind is being installed at a rate of 1 GW per year in the last few years.The Italian Mafia has latched onto this lucrative business muscling their way in.The Sicilian Mafia is said to own a large portion of the country Wind Farm Assets and the $1.9 Billion Seizure of assets from a high flying businessman is proof of this.43 Companies mainly operating in the Solar and Wind Segments were seized by the state in one of the biggest swoops against Organized Crime.Wind Turbines involve acquisition of land,local permits and subsidy grants which require a lot of organization and local clout.The Sicilian Mafia is uniquely place to control and organize the setting up of Wind Farms.With a government guaranteed return of Euro 18c/KwH,the Wind Subsidy in Italy is one of the highest in the world.Compare this to the Rest of the World where Wind Subsidies get around $0.10/KwH.Note Criminals have not only been involved in Italy,but there are also reports of nefarious activity in Renewable Energy in Bulgaria,Spain,Canary Islands etc.
20 GW of Capacity is expected to be built by 2010 end in China up from around 10 GW in 2009.Fierce Competition in the Wind Turbine Market has led to increasing distress for smaller players.Sinovel the biggest Wind Turbine maker which sold 3.5 GW in 2009 has been using price as a weapon to drive away competitors.These Companies are now trying to expand internationally.Korean Companies like Samsung,Hyundai are investing heavily in the Wind Sector and are on track to become formidable competitors in a few years.Suzlon’s Chinese Dreams looks difficult to implement in reality.
India’s most industrialized and fast growing states like Gujarat,Tamil Nadu,Maharashtra have been the most aggressive in Green Energy as well.Gujarat has attracted huge interest in Solar Energy through strong support by the government.Tamil Nadu and Maharashtra account for almost 70% of India’s 8-9 GW Wind Energy capacity.However economically backward states like Orissa,Bihar,Uttar Pradesh remain laggards in this respect as well.Orissa seems a classic case where the general economic lethargy extends to the Renewable Energy Sector as well.
Siemens is one of the largest conglomerates in the world with a huge Green Division.This German Giant is present in almost all sectors of the upcoming Green Industry.Siemens is a Top 10 World Supplier of Wind Turbines and has recently upped its investment into Solar Thermal Technology through the acquisition of pioneering CSP company Soleil […]
Vestas is trading at historical lows with these repeated bad news taking huge chunks from the stock.However like Suzlon,Vestas is more like a Falling Knife than a Fallen Angel.Despite a major new order of 400 MW,Vestas stock has fallen even more.Like Nokia in Mobiles and Sunpower in Solar Energy,the industry has totally changed for these industry leaders.The structural issues with the major incumbent Wind Turbine Makers are too dire for short term order wins to help them
Germany is planning to extend the life of the nuclear reactors that are supposed to close in 2022 by an average of 12 years.Note extension will results in windfall profits for Germany Big 4 utilities which will be offset by Euro 2.3 Billion in Taxes for the next 6 years and a commitment for funding […]