• 3 hours Gunmen Kidnap Nigerian Oil Workers In Oil-Rich Delta Area
  • 5 hours Libya’s NOC Restarts Oil Fields
  • 6 hours US Orion To Develop Gas Field In Iraq
  • 3 days U.S. On Track To Unseat Saudi Arabia As No.2 Oil Producer In the World
  • 3 days Senior Interior Dept. Official Says Florida Still On Trump’s Draft Drilling Plan
  • 3 days Schlumberger Optimistic In 2018 For Oilfield Services Businesses
  • 3 days Only 1/3 Of Oil Patch Jobs To Return To Canada After Downturn Ends
  • 3 days Statoil, YPF Finalize Joint Vaca Muerta Development Deal
  • 3 days TransCanada Boasts Long-Term Commitments For Keystone XL
  • 3 days Nigeria Files Suit Against JP Morgan Over Oil Field Sale
  • 4 days Chinese Oil Ships Found Violating UN Sanctions On North Korea
  • 4 days Oil Slick From Iranian Tanker Explosion Is Now The Size Of Paris
  • 4 days Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 4 days Venezuelan Output Drops To 28-Year Low In 2017
  • 4 days OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 4 days Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 4 days Kinder Morgan Delays Trans Mountain Launch Again
  • 4 days Shell Inks Another Solar Deal
  • 5 days API Reports Seventh Large Crude Draw In Seven Weeks
  • 5 days Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 5 days EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 5 days IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 5 days Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 5 days Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 5 days Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 5 days Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 6 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 6 days Norway Grants Record 75 New Offshore Exploration Leases
  • 6 days China’s Growing Appetite For Renewables
  • 6 days Chevron To Resume Drilling In Kurdistan
  • 6 days India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 6 days India’s Reliance Boosts Export Refinery Capacity By 30%
  • 6 days Nigeria Among Worst Performers In Electricity Supply
  • 7 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 7 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 7 days Saudis To Award Nuclear Power Contracts In December
  • 7 days Shell Approves Its First North Sea Oil Project In Six Years
  • 7 days China Unlikely To Maintain Record Oil Product Exports
  • 7 days Australia Solar Power Additions Hit Record In 2017
  • 7 days Morocco Prepares $4.6B Gas Project Tender
Alt Text

Overcoming Wind Energy’s Biggest Obstacle

New research suggests that smaller,…

Alt Text

Microsoft, Google Turn To Wind Energy

Wind major Vattenfall has just…

Michael McDonald

Michael McDonald

Michael is an assistant professor of finance and a frequent consultant to companies regarding capital structure decisions and investments. He holds a PhD in finance…

More Info

Top Wind Energy Stocks For Renewables Investors

Top Wind Energy Stocks For Renewables Investors

 Solar power appears to be hitting some technological hurdles, if the slowing rate of innovation in that industry is any indication. This apparent slowdown could well afford the wind sector the ideal opportunity to gain some momentum in the renewables space, spread further across the United States while also attracting more investment.

Currently wind power is generating roughly 5% of the overall power for the country as a whole, and considerably more than that in the Midwest where a lot of wind farms are concentrated. States like Minnesota, Kansas, and Iowa are generating 15 to 30% of their power from wind. Even with current technology, larger states like Texas and California are nearing 10% of their energy generation from wind. Wind power has fully become a mainstream source of electricity, and should no longer be considered a fringe energy source.

But several new innovations in the area have the potential to make wind energy even more viable across the country as a whole. Related: China To Create An Oil Supermajor Twice The Size Of Exxon

First, the US Energy Department sees a new generation of wind turbines coming that will be 100-200 feet taller than current commercial wind turbines. New wind turbines could reach to a height of 460 feet which, in turn, would allow wind farms to take advantage of faster wind speeds that occur at higher elevations. With wind power already present in 39 US states, the new turbines could potentially open up a further 20% of the country to economic wind generation, essentially making wind power viable nationwide.

Second, there is a new type of wind generation equipment that is starting to pick up support. Vortex Bladeless is a start-up wind energy company which aims to upset the traditional wind generation model with a new type of turbine that has no blades and no moving parts of any sort.

The new wind “turbines,” if they can still be called that, look a little like giant straws and they generate power through oscillation of the structure. The new turbines can be spaced together more closely since they lack blades, and the absence of moving parts leads to less wear and tear over time which should lower costs. It would also get around the criticism of traditional turbines as a threat to birds. The company is starting to raise funding, and it’s quite possible that the new turbines could be a common site in a few years. Related: Why Tesla’s Battery’s Won’t Work For Rooftop Solar

On the other end of the spectrum, industrial behemoth General Electric announced a new digital system that it says will boost wind farm energy production by up to 20 percent. The company’s “Digital Wind Farm” will allow wind to better integrate into the existing grid.

A 20 percent efficiency gain is not a trivial figure, and if GE can come close to meeting those claims, then ultimately every wind farm in America would likely use the product.

Let’s look at a back-of-the-envelope calculation of the potential market for GE. There are 50 GW of wind power being installed worldwide currently (plus more in the future of course). Each GW is worth about $50 million a year, and assuming GE used the product in a Software as a Service (SaaS) format, based on value-added pricing at the industry standard of 10%, the technology could yield profits of roughly $250 million annually starting in the first year. Assuming wind power generation grows at 20% per year, in less than eight years, the firm would be generating a billion dollars a year in revenue from the product. Even for GE, that’s substantial. Related: Top 4 Oil Companies For Dividend Investors

GE is not the only way to play the growing momentum in wind power though. Toronto-listed Northern Power Systems is a manufacturer of wind turbines and other equipment and represents a purer play on wind energy.

Wind power is now decidedly a mainstream source of energy. But the sector continues to innovate and achieve technology breakthroughs. For investors, this offers a lot of opportunity.

By Michael McDonald of Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News