ENDESA Will Invest Euro 286 Million in New Wind Farms and Mini Hydro Plants...
ENDESA (ELE) has received authorisation to build and start up new wind farms and mini hydro plants this year, requiring an investment of Euro 286 million. The start-up of these projects, part of ENDESA's Strategic Plan, will add 277 MW to ENDESA's generation capacity, 252 MW in wind (for a Euro 250 million) and 25 MW in mini hydro capacity (for an investment of around Euro 60 million). Facilities already under construction and expected to come on stream in 2005 include the wind farms at Pena Ventosa and Chan do Tenon in Galicia, Las Hoyuelas in Castilla La...
Why Did Finavera Wind Energy’s Stock Crash?
Tom Konrad CFA A month ago, I was convinced that Finavera Wind Energy’s (TSX-V:FVR, OTC:FNVRF) stock was only temporarily trading at depressed levels in the low 20 cent range because investors were disappointed at the deal with Pattern Energy. Many shareholders had been hoping for an outright sale, and were selling into the thinly traded holiday markets. I predicted that Finavera stock would “quickly rebound to at least the C$0.30 range over the next few days or weeks, as liquidity returns to the market, and investors revalue the stock based on the agreement with Pattern.”...
Valuing Finavera’s Deal With Pattern Reveals Buying Opportunity
Tom Konrad Finavera's Wildmare Wind Energy Project is one of three projects in Bristish Columbia to be sold to Pattern Renewable Energy Holdings Canada for C$40M. An earlier sale to of Wildmare Innergex Renewable Energy fell through in September. Photo source: Finavera. On October 1st, following the failed sale of Finavera Wind Energy’s (TSX-V:FVR, OTC:FNVRF) 77 MW Wildmare Wind Energy Project to Innergex Renewable Energy Inc (TSX:INE, OTC: INGXF), Finavera announced that it was in talks with three potential bidders and would review all offers for the company. Finavera...
Two Canadian IPPs For Your Portfolio
Most alternative energy investors are aware of North American wind power's very bright growth prospects. In past articles, we discussed encouraging projections for the US and Canadian (PDF document) wind markets between now and 2015. While onshore European capacity is fast being exhausted, North America is only beginning its foray into wind and some major capex can be expected in this space over the coming years. Besides solid expected growth, another phenomenon is currently impacting the wind industry; consolidation. This is a global movement that is affecting all of the power gen sector, and that has no-doubt been...
Global wind energy capacity seen tripling by 2014
The global wind energy industry is expected to enjoy continued strong growth in coming years with total installed capacity seen more than tripling from current levels by 2014, an industry survey showed on Tuesday. Over the next eight years, international installed capacity is expected to increase to about 210,000 megawatts from today's installed total of about 59,000 megawatts, a study by the German Wind Energy Institute (DEWI) showed.
Chinese wind power company seems to understand American political capitalism
by Michael Giberson American University’s Investigative Journalism Workshop has published reports detailing the extensive political connections in the United States developed by Chinese wind power company A-Power Energy (APWR) in its effort to build a 600-MW wind farm in West Texas. A-Power (APWR) and their Chinese and American partners were seeking $450 million in section 1603 grants and U.S. Department of Energy loan guarantees to help fund the project. New York senator Charles Schumer objected to the idea that stimulus funds would flow to Chinese workers and sought to block the project’s access to the funds. A-Power chose to fight...
Maxwell Technologies Receives 1.5 Million-Unit Ultracapacitor Purchase Order From Enercon for Wind Energy Systems
Maxwell Technologies (MXWL) announced that Enercon GmbH has placed a 1.5 million-unit purchase order for ultracapacitors for wind turbine blade pitch systems. Enercon currently uses BOOSTCAP® ultracapacitors for backup energy storage and power delivery in wind turbines models ranging in output from 300 kW to 6 MW. Ulrich Neundlinger, Enercon's managing director of switching units, said that the company is expanding its use of ultracapacitors for blade pitch system backup power after initial deployments confirmed their significant advantages over traditional battery solutions.
Petersen’s Wind Power Paradigm Paralysis
Tom Konrad CFA I published my rebuttal to John Petersen's recent article "Gone With The Wind – Debunking Geographic Diversity" on November 1st last year. It was titled Alternative Energy: The Paradigm is the Problem. That article had two parts. The first part focused on electric vehicles, and argued that the problem with the electric car was not electric propulsion, but the car paradigm. I concluded that electric propulsion makes considerably more sense for electric bikes, trains, and buses. John clearly understood that section, because he published an article just last week "Lux Research Confirms that...
China Poised For Significant Expansion In Wind Power Generation
by William Gregozeski, CFA China is the world’s largest producer of electricity, surpassing the United States in 2011, with demand increasing alongside its strong, sustained growth in GDP. Electricity generation in China has increased 9.6% annually, from 2005 to 2013, reaching 5,425.1TWh of electricity. Coal-fired plants currently make up over two-thirds of power generation, which is partly the result of an abundance of coal in China. Despite this growth, the country expects demand to continue to increase at a rapid pace, reaching 7.295TWh of demand in 2020 and 11,595TWh in 2040. However, the growth in electricity...
Broadwind: Optimism In The Wind
by Debra Fiakas CFA In early October 2013, Broadwind (BWEN: Nasdaq) announced over $100 million in new wind tower orders, tipping the value of orders received in the year 2013 over the $300 million mark. Wind energy has been a fickle market to pursue, alternatively showing great promise as policy makers show support for renewable energy sources and then sinking as cheap natural gas substitutes flood the market. Broadwind’s expertise is in gearing of various kinds. In addition to supplying gearboxes for wind turbines, the company offers maintenance services to tower owners. Oil in gearboxes...
Alternative Energy Companies Posting Large Returns
Alternative energy companies delivered compelling returns for investors. A look at Crystal Equity Research’s ‘indices’ of renewable energy, conservation and environmentally-friendly technology companies found some exceptional price moves. We review five companies here that have experienced top price moves from 52-week lows.
Codexis, Inc. (CDXS: Nasdaq) has gained 257% from its 52-week low. The company won a place in our Beach Boys group through development of proteins for a mix of applications from biocatalysts for industrial enzymes, chemicals and pharmaceuticals. While the company has started generating revenue from its technology, it has yet to post a profit. Codexis delivered a smaller than expected loss in the...
The Magma/Plutonic Merger
A Great Deal for Plutonic Shareholders, Not bad for Magma Tom Konrad CFA As a shareholder of Magma Energy Corp. (MGMXF.PK), I'm reading through the joint information circular on the proposed merger of Plutonic Power Corp (PUOPF.PK) and Magma to form "Alterra Power Corp." I'm not thrilled with the merger, although I plan to vote for it, now that it's arranged. Overall, I think the merged Alterra will be a stronger company than either company alone. Both companies are in capital intensive niche Renewable Energy industries, so the added scale and diversification of Alterra should better...
The Production Tax Credit & The Year Ahead For US Wind
Even though solar - and especially solar PV - has managed to capture the lion's share of public equity investors' attention over the past three years, wind remains far more competitive with with fossil-fired power generation on a cost basis than solar, and thus presents a fundamentally stronger investment case for the time being (and I emphasize for the time being). What's more, wind as an industry is more mature than solar; for solar, the lack of earnings for many companies and the wildly inflated PEs for others make the sector potentially volatile and risky for investors. While...
Investing In Offshore Wind Power
Tom Konrad CFA Offshore Wind in the United States Last week, the long-embattled Cape Wind project got a break: Utility NStar(NST) agreed to buy 27.5% of the proposed offshore wind project's output. Together with a previous power purchase agreement with National Grid (NGG), this gives Cape Wind a buyer for 77.5% of the project's total projected output. Jim Gordon, Cape Wind's President speaking at Offshore Wind Power USA in Boston, called the NStar deal the "starting gun" for Cape Wind's financing round. Yet speakers and attendees at Offshore Wind Power USA agreed that the Cape Wind story...
Offshore Wind Blows Into The US: Seven Stocks To Catch The Breeze
Tom Konrad CFA The Growth of Offshore Wind Offshore wind has finally gotten a toe hold in the United States. The United States' first offshore wind farm, the 30 megawatt (MW) Block Island Wind Farm, is under construction. A new project, the South Fork Wind Farm will be three times the size of Block Island (90 MW), is set to be approved by the Long Island Power Authority. This project will be located 30 miles East of Montauk, NY and Southeast of Block Island in a wind energy area designated by the federal Bureau of Ocean Energy...
ENDESA Acquires 290 MW in Wind Power from Sacyr Vallehermoso In Portugal
ENDESA (ELE) has signed an agreement with Sacyr Vallehermoso for the acquisition of 100% of the share capital of Portuguese company Finerge Gestao de Proyectos Energeticos, S.A. (FINERGE), umbrella company of a holding which operates wind farms and co-generation plants in Portugal. The deal hinges on the pertinent authorisation from the Portuguese anti-trust authorities. The company, which has 43 subsidiaries, owns projects already in operation whose installed capacity is 60 MW and projects under construction or in the pipeline with a capacity of 260 MW.
