Friday, January 15, 2010
Wind Stock Review and Future Prospects
Wind power generation is growing rapidly around the globe. The earth's wind resources could provide five times the total energy of the world's current demand for electricity. The amount of wind power available in the US could exceed America's energy requirements by 10 times.
Wind is a mature technology that can be built and installed within 2 months. Wind powered turbines are low maintenance, durable and use less land and water than any other source of renewable energy
To help investors see the value of renewable investments, on January 12, 2009 The Green Market selected and posted 4 stocks (WNDEF, WND, MMGW and CPTC) in its wind stock portfolio. Here is a review of the performance of these 4 stocks in 2009.
Western Wind Energy (WNDEF and WND), produces energy from more than 500 wind turbine generators in the US South West, its stock values increased by 246% and 195% in 2009.
Mass Megawatts Wind Power Inc. (MMGW) develops prototype wind energy production equipment. MMGW stock grew 8% in 2009.
Composite Technology (CPTC) makes and markets renewable and energy efficient electrical products, including wind generation turbines under the brand name DeWind. CPTC lost 10% throughout the course of 2009.
When averaged as a whole, The Green Market's wind portfolio gained 110% in 2009.
Wind will continue to grow in the coming years. Around the world new centers of wind production activity have emerged or are emerging. In the US the Tehachapi region of California is producing much of the new wind-generated power.
In the last 2 years wind power has been the greatest source of increased electric power in the US. There are 22 states that now have more than 100 megawatts of installed electricity production. At present 10,000 small windmills are being installed each year in the US and that number is rapidly increasing.
In terms of total volume of electricity already being produced from wind, the US is in the first place followed by Germany , Spain and China. But this order is changing, in 2008 China was second in new capacity added and by 2010 China will be in second place overall.
Beijing has infused $14.6 billion into wind energy and there is a 10 GW turbine cluster planned for the area around the city of Jiuquan. By the end of 2010 China will be well on its way to doubling its nationwide wind capacity. By 2020 China will have 100 GW of wind power almost equaling the entire world's current capacity of 121 GW.
Brazil's goal is to derive 5% of the national electricity supply from wind generated power. Brazil's burgeoning wind energy market has a potential estimated at around 250GW, concentrated in the northeast, coastal south, and northwest of the major cities Rio, Sao Paulo and Belo Horizonte. Recently 71 farms and 773 turbines were approved at auctions which generated $5.4 billion and 339 projects. This will expand to 10 GW over the next decade.
Some noteworthy wind stock in The Green Market's watchlist include Energias de Portugal (EDPFY.PK) and Alstom (AOMFF.PK). Energias de Portugal is one of Europe's largest electricity providers, and the fourth largest wind power producer in the world. Its stock value grew by 17% in 2009. Alstom is involved in various types of power segments including wind through its Spain based Ecotecnia division, which is a producer of turbines. AOMFF stock value improved 16% in 2009.
Iberdrola, Vestas Wind and CPFL are a few other wind stocks worthy of consideration. Spanish company Iberdrola Renovables (IRVDY) is the number one wind developer in the US and the recipient of considerable stimulus money earmarked for project development. They are well funded and their valuation is extremely attractive.
Vestas Wind Systems (VWDRY) is the world's largest turbine maker, this Denmark-based company has more than 39,000 wind turbines worldwide.
CPFL Energia S.A. (CPFL) is a holding company that, through its subsidiaries, distributes, generates and commercializes electricity in Brazil. In 2009 the CPFL share price nearly doubled with a dividend yield of 6.50%. For 2010, CPFL is one of the The Green Market's top energy infrastructure plays.
Brazil and other nations of the world still have a far way to go to reach Denmark's world leading wind power generation. At more than 20 percent, Denmark is first in terms of the share of electricity generated by wind. Many nations are striving to equal Denmark's great accomplishment.
While wind has provided some great returns in 2009, the success of renewable energy sources like wind depends on grid parity. There will be no stopping wind power stocks once governments help put clean energy on a level playing field with cheap and dirty energy like coal.
Next: Stock Review and Future Prospects: Geothermal, Energy Efficient (Smart) Grid, Energy Efficient Lighting
Wind Stock 01.08.09
Wind Stock Review 01.12.09
Solar Stock Review and Future Prospects
Sustainable Investing and Long Term Thinking
Investing in CleanTech: Efficiency Upgrades and Renewable Energy
US Government Incentives: Red, White, Blue & Green
Green Stimulus: Global Green New Deal
Obama's Green Stimulus
Green Stimulus Part 2: Basic Elements