Wind Power

Europe’s oil major sweet spot could yet turn sour

4 May 2023

Shell, BP and Total are still making fat profits, and investors seem fine with a slower route out of oil. Rising rates also make wind projects look even less enticing than fossil fuel ones. But longer term, Europe’s oil titans may lose their head start in the shift to net zero.

Rich countries and India should cut a climate pact

10 Apr 2023

Helping the world’s most populous nation grow in a green way is one of the best things that could happen for its people and the planet. While there are many obstacles to a deal between the G7 and India, the prize is great enough for both sides to overcome them, says Hugo Dixon.

EU and US green arms race misses bigger picture

16 Mar 2023

The European Union’s response to Joe Biden’s Inflation Reduction Act gives member states leeway to push back with their own green subsidies. Yet plans for production targets are misguided. To decarbonise while managing China risks, it’s better to seek common ground with the US.

Europe is playing catch-up in green subsidy race

9 Feb 2023

The U.S. unveiled $369 bln of climate subsidies for consumers and manufacturers. In this Viewsroom podcast, Breakingviews columnists explain why Brussels may need to launch a similarly ambitious plan or risk losing its share of jobs of the future.

Orsted increasingly merits its investor blowback

20 Jan 2023

The $38 bln Danish wind farm group flagged lower-than-expected 2023 targets as its key offshore arm struggled. Shareholders always granted Orsted a premium valuation, due to growth expected from new projects. Construction delays and rising rates are putting that in question.

Europe’s energy crisis nears winter of discontent

18 Oct 2022

Germany, Italy and others have scrambled to replace Russian gas and pipeline attacks have become a concern. The Oxford Institute for Energy Studies’ Jack Sharples tells The Exchange podcast Europe must learn to live with less power. Next year may be even more challenging.

Net zero woes go beyond lack of global cooperation

20 Sep 2022

The International Energy Agency frets that poor collaboration between states will keep emissions high. But the struggles of green groups like ITM Power suggest countries aren’t doing enough to help domestic markets either. Energy policy needs to do more than fight today’s crisis.

ESG is more of a muddle than a fiddle

19 Jul 2022

Environmental, social and governance investing is under the spotlight. In this episode of The Exchange podcast, Bridgewater’s sustainable finance gurus Karen Karniol-Tambour and Carsten Stendevad explain how ESG’s main problem is a lack of clarity over its goals.

UK windfall tax has reasonable hierarchy of pain

26 May 2022

Finance minister Rishi Sunak is funding a $19 bln fiscal support plan with a $6 bln raid on North Sea oil. The levy is gentle on companies who invest, and harsh on those with big tax assets from past losses. But high energy prices mean a further thwack to utilities may follow.

UK’s power tax plan may avoid tilting at windmills

24 May 2022

Shares in utilities like SSE and Drax dived after reports of Rishi Sunak eyeing up 10 bln pounds of excess profits. Windfalls from high power prices are hard to grab and North Sea oil is a better target. But the UK chancellor’s haul from power groups will still be far from zero.

Siemens Gamesa’s minorities can hold out for more

23 May 2022

The turbine maker’s parent wants to take it private at 18 euros a share, half its value in early 2021. After a slew of profit warnings, any exit looks tempting. But with big savings in store and 2.5 bln euros in the bank, Siemens Energy CEO Christian Bruch can afford to pay more.

Europe may swap one energy dependency for another

9 May 2022

The bloc is ramping up investment in renewable sources to help kick its addiction to Russian oil and gas. Yet China currently controls at least 75% of the solar panel supply chain. To gain its energy freedom, Europe will also need to invest in manufacturing at home.

Windmill makers’ vicious cost cycle has an ending

5 May 2022

Denmark’s Vestas and rival Siemens Gamesa have failed to turn booming demand for wind farms into higher earnings. Increased prices to offset soaring raw material costs will take several years to kick in. But now wind power is cheaper than fossil fuels, price pressures are easing.

Capital Calls: Ford’s private equity playbook

2 Mar 2022

Concise views on global finance: The Detroit automaker’s reorganization plan makes explicit the goal of squeezing its traditional car business for cash to fund its electric future.

Offshore wind power gets a tartan quantum leap

7 Feb 2022

The green energy’s drawback is its major use of scarce coastal shelf. Scotland’s recent auction of 15 gigawatts of floating turbines, enough to power 60% of UK homes, changes the game. The economies of scale created should make a nascent technology cost-competitive quicker.

Siemens Gamesa’s new Mr. Fixit can take his time

3 Feb 2022

The wind turbine maker has ousted its second CEO in two years. As another German, Jochen Eickholt may get a frosty reception from Spanish bits of the firm. Parent Siemens Energy won’t mind. The longer Gamesa’s woes drag on, the easier it will be to buy out minority investors.

Siemens Energy wind fix would be worth the money

28 Jan 2022

The German group may buy out minority investors at struggling wind-turbine subsidiary Gamesa. The 5 bln euro bill sounds steep, especially as the problems may be temporary. Yet Siemens Energy can afford it, and it would get to keep the upside for itself when wind power scales up.

Scotland shows England how to run a wind auction

17 Jan 2022

Edinburgh has sold permits for a huge 25 GW of offshore power at cheaper prices than London a year ago. Successful bidders will be more likely to deliver without strife, letting politicians hit green targets. It also gives Scotland bargaining chips in any future secession talks.

Climate-change money will flow freely to Plan B

24 Dec 2021

COP26’s so-so outcome makes damaging temperature rises more likely. At some point, optimal portfolios may require guns and canned food. Until then investors will lean towards shares in Syngenta, Veolia and other companies that aid adaptation to global warming not just mitigation.

Capital Calls: Nikola’s SEC collision damage

21 Dec 2021

Concise views on global finance: The electric-truck maker is paying the U.S. securities watchdog $125 million. It’s a big dent but, given the stakes for SPACs and their targets, may only mildly discourage cheerleaders from taking the step from hype into fraud.