Wind Power

Capital Calls: Chubb and Hartford, Swimming pools

22 April 2021

Concise views on global finance: The company led by Evan Greenberg twice raised its bid for its Connecticut rival, but so far to no avail; a blowout quarter for private-pool maker Pool Corp points to buoyant wealth and spending trends, but only for some.

Negative UK power prices bolster hydrogen hype

22 April 2021

British electricity prices are falling into the red more often due to wind farms cranking up output on blustery days. As with crude oil’s shock slump last year, it’s a sign of power markets working, not breaking. It also helps justify lofty valuations for hydrogen-related firms.

U.S. offshore wind set to hit gale force growth

31 March 2021

The first big project, worth $2.8 bln, is on track for a final green light. Europe already has 30 times as much capacity. Slow approvals have left U.S. wind power in the doldrums but with costs now lower than some fossil fuels and falling fast, opposition will be blown away.

Antipodean wind deal harnesses three power sources

15 March 2021

Two companies divvying up New Zealand’s Tilt Renewables for $2.1 bln are paying a 99% premium and 96 times earnings. The scarcity of green assets is one driver. A fragmented market is another. The buyers need their governments to fulfil clean energy pledges to justify the price.

Indian renewables SPAC sets temperate tone

24 February 2021

Goldman-backed ReNew Power is listing in New York via a blank-cheque firm. It’s a decent bet on India’s pivot to clean energy, with a structure and valuation that factor in the industry’s flaky customers. Future Asian SPAC deals in waiting may not be so well grounded.

UK wind auctions are frothy for a reason

8 February 2021

The toppy price paid by BP for wind turbine-friendly seabed reflects its desperation to pivot to green energy. But the UK’s subsidy-laden regime is also more attractive than those of other states. That makes wind maven Orsted’s reluctance to match the UK major even more striking.

Green energy valuations could use stiffer tailwind

5 November 2020

Siemens Gamesa and Danish rival Vestas now have over 60 bln euros of orders for wind turbines between them. But valuations look toppy even if they hit margin targets. A possible Joe Biden U.S. presidency is also less likely to supercharge renewables with a Republican Senate.

Iberdrola’s green deal is pricy bet on Biden win

21 October 2020

The $82 bln Spanish utility is buying U.S.-based PNM Resources for $8.3 bln including debt. Without synergies, the price looks punchy. But given wind and solar assets could get even dearer if Joe Biden becomes president and oil majors charge in, moving now has some logic.

China’s green goal could lead to a virtuous circle

29 September 2020

Beijing’s pledge to decarbonise before 2060 requires major electrification using renewable energy. The catch is that key parts of that strategy, like hydrogen power, remain too pricey. Yet if political focus helps make them cheaper, the benefits will not just be felt in China.

BP’s wind tilt is more steady breeze than gale

18 September 2020

The UK oil major’s “green week” yielded a target of 20 GW of renewable energy by 2025. Even with a mooted $5 bln a year in investment, BP would struggle to get there via higher cost offshore wind. That’s probably why CEO Bernard Looney’s blueprint allows for a steadier pace.

Vestas wind blows holes in BP’s green ambition

12 August 2020

The oil major is late to the party it called in 2000 with its “Beyond Petroleum” rebranding. Renewables were cheap to enter back then, when the Danish wind turbine maker was worth under $2 bln. Not so easy now, with soaring orders and revenue puffing up Vestas’s value to $29 bln.

Shell’s Eneco fail flags Big Oil’s tricky pivot

25 November 2019

The oil group lost out to Mitsubishi’s 4.1 bln euro bid for the Dutch utility. Paying up for small European players is easy for Japanese bidders with a low cost of capital. Less so for old crude producers trying to shift to low-carbon energy, while saddled with wary shareholders.

Vestas buttresses Denmark’s wind-power primacy

7 November 2019

The Copenhagen-listed turbine maker’s order books have bulged to 33 bln euros. More importantly, margins are withstanding the buffeting of subsidy removals, unlike at rival Siemens Gamesa. Alongside operator Orsted, tiny Denmark is king of the $1 trillion wind business.

Oil bosses have a love-hate relationship with wind

30 October 2019

With fossil fuels increasingly frowned on, rapid growth in renewables should appeal to greenish majors like Total and Royal Dutch Shell. Oil’s much higher returns are a reason to demur. Yet plunging offshore wind costs and the risk of price falls give them little choice.

Siemens Gamesa buffeted by renewables tailwind

30 July 2019

The 10 billion euro Spanish wind-farm builder’s shares sank 17% as competitive pressures hit prices. Wobbles are likely as governments phase out subsidies. But with the costs of wind power now sinking below rival sources, the sector in general is in breezier shape.

Worst U.S. infrastructure shortage: political will

10 May 2019

A golden spike completed the Transcontinental Railroad 150 years ago. Long-distance power lines transporting renewable energy are arguably today’s equivalent. A decade-long project nearby shows today’s problems aren’t mountains, tech or economics, but red tape and nimbyism.

GE power slump is positive wrapped in negative

23 May 2018

The $130 bln conglomerate warned profit from making turbines won’t grow this year. And demand could remain soft for a while. GE’s sprawl means that as the world goes, so do its businesses. But the irony of slimming down is that fossil fuel dependency just becomes more visible.

Duke Energy draws power from climate activism

22 March 2018

America’s largest electricity generator plans to phase out coal and slash carbon emissions. Gas and renewables make business sense regardless of the Trump administration’s policy-reversal efforts, it claims. Duke’s stance and transparency put Exxon’s climate disclosures to shame.

DONG Energy is proof that green and greed mix well

10 August 2017

The Danish wind operator’s earnings are up more than expected in the second quarter. This is no flash in the pan and CEO Henrik Poulsen may hand back more cash to investors in the next year or so. DONG’s valuation deserves to catch up with its European green energy peers.

Vestas is one blade short of a full turbine

18 August 2016

After a much better second quarter, the resurrected Danish wind turbine maker has increased its operating profit forecast for 2016. Successful cost cuts and rising demand for green power create strong tailwinds. It’s time for the $16 bln group to ditch a parsimonious dividend policy.