Warren Buffett and Google Aid Nuclear Energy's Slide

By Taylor Muckerman and Joel South – Mar 12, 2013 at 5:30PM

NASDAQ: GOOGL

Alphabet

Market Cap

$1,940B

Today's Change

(-0.59%) -$0.92

Current Price

$155.09

Price as of April 19, 2024, 9:57 a.m. ET

Government subsidies have gone a long way toward building out the wind energy industry in the U.S. What effect is this having on nuclear power providers?

Even though both are considered "green energy," wind has been the chosen energy source for U.S. energy policy lately. With the extension of the wind energy tax credit in 2012, the industry witnessed record capital expenditures. This build-out has been taking its toll on the likes of Exelon (EXC 0.16%) and Dominion Resources (D 0.84%) due to their inability to shut down nuclear power generation during off-peak demand.

Many expect the proliferation of wind and solar energy to continue, especially as state mandates start to kick in regarding renewable energy usage. Based on this outlook, nuclear and coal power generators are likely to continue suffering unless subsidies are curbed and natural gas prices begin to rise.

For more on the current and prospective spending in this sector, watch the video below.

Joel South and Taylor Muckerman have no position in any stocks mentioned. The Motley Fool recommends Dominion Resources and Exelon. It also recommends and owns shares of Google. 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.