October 31, 2017 Read More →

Bullish on U.S. Wind

Motley Fool:

As companies like Amazon (NASDAQ:AMZN), Alphabet Inc (NASDAQ:GOOG), and renewable energy yieldcos look to expand their generation, we’ll see even more wind power plants built.

With the booming demand for renewable energy and improving technology of wind turbines themselves, I think investors should be bullish on the future of wind energy.

What’s interesting about wind power is that turbines aren’t actually getting cheaper on a cost-per-watt basis.

What’s changed is that wind projects have a higher capacity factor, meaning each watt of wind generation installed is generating more electricity per year. Think of it like a new wind turbine spinning more often than it did in the past. From 1998 to 2001, capacity factor was 25.4%, and projects built in 2015 had a capacity factor of 42.6%. Each watt installed generated 67% more electricity.

If wind turbine manufacturers can continue to cut costs and increase capacity factor, the industry will continue to grow. The companies with the most to gain are General Electric (NYSE:GE), Vestas (NASDAQOTH:VWSYF), and Siemens (NASDAQOTH:SIEGY), who are top three in market share in the U.S.

With the booming demand for renewable energy and improving technology of wind turbines themselves, I think investors should be bullish on the future of wind energy.

More: Why Wind Energy Is Booming in the U.S

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