Is Wind Power Ready to Move on Without Taxpayers' Help?

Recent deals in the wind space suggest the industry may be ready to stand on its own without government backing.

Jan 5, 2014 at 2:38PM

The hits just keep on coming for the wind sector, and that should further highlight the growth potential for this sector with investors. For years, critics of renewable energy in general have said that the sector needs to stand on its own two feet and not rely on government subsidies. Thanks to advances in materials and technologies, the wind sector is showing signs that it is growing up, a bit smarter and ready to take on natural gas.

In recent weeks I've pointed out that despite the wind production tax credit (PTC) set to expire at year-end, companies like Italy's Enel Green Power (NASDAQOTH:ELPSF) and Germany's Siemens (NASDAQOTH:SIEGY) are moving forward with wind projects and innovative turbine technology here in the U.S. In fact, Siemens recently announced it is the supplier of the largest onshore wind turbine deal in the world (448 turbines), an order from Warren Buffett's MidAmerican Energy to be located in Iowa; according to the company's website, Siemens "has nearly 5,000 wind turbines installed at wind farms throughout the U.S., including Hawaii, Iowa, Kansas, Nevada, North Dakota, Oregon, Pennsylvania, Texas and Washington State."

Now Siemens is back in the news with plans to provide 3.5 megawatt offshore wind turbines for the 130-turbine Cape Wind Project. Additionally Siemens will be providing maintenance on the turbines for 15 years, so it's obvious the move to support wind is a long-term affair even without PTCs. Continued positive momentum for wind investment should bode well for turbine makers such as General Electric (NYSE:GE) and Emerson Electric (NYSE:EMR), the parent of SSB Wind Systems. I'm also a fan of American Superconductor because they are making the brains of the wind turbines. Additionally, since rare earth materials are being more widely integrated into blade technology, investors may want to keep Molycorp (NYSE:MCP) on the radar as well. 

More on Buffett's energy investments
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John Licata has no position in any stocks mentioned. You can follow John on Twitter @bluephoenixinc. The Motley Fool recommends Emerson Electric Co.. The Motley Fool owns shares of General Electric Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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