Dropping oil prices and drying up of financing, has pretty much put wind energy on the back burner again, it seems to me. Projects are being canceled and equipment manufacturers are starting to poll their customers before processing back orders. This is just my humble point of view, but it looks to me like this speculative investment could be in trouble. I welcome any reasoned counter to this observation.
Pronunciation: \ˈäŋ(k)st, ˈaŋ(k)st\
Etymology: Danish & German; Danish, from German
Date: circa 1942
: a feeling of anxiety, apprehension, or insecurity <teenage angst>
Only when you publish.
Oil prices are roughly where they were when big bucks were continuing to be invested in wind and solar. Oil prices will go back up to just under $100. Right now refineries are making profits they could not make when oil was well over $125 a barrel because there was no room at the pump. We were hoping oil would retreat to $100 a barrel when it was $147. It is mainly driven by the first rule of free enterprise "What the market will bear." In short the desire for wind, solar, etc. along with hefty investment was there when oil was well below $67 a barrel. Oil will edge up to $80 a barrel soon and then inch up to under and over $100. We have been prepped for the reality. It is not an issue of supply and demand. It is an issue of profit and the speculators and money people have found out what they wanted to know. Even in hard times people will pay over $100 a barrel. Add in global warming. Add in the need for clean energy in China where 80 million people a year die from lung ailments. The big issue is money people need to invest. During a recession money is invested largely in cash cows or recession proof areas such as pharmaceuticals, foodstuffs, and energy. Right now things are stalled until late spring when Obama is well installed and that idiot Bush is gone and hopefully forgotten. There should be trials with sentencing. Money will flow and is flowing now-200 wind turbine farm on the Atlantic Bight of the coast of the US is being financed right now. Alternative energy and unfortunately oil exploration is being financed right now. When Obama starts directing billions towards alternative energy in the late spring private money will follow. The tide will float a lot of boats. The delay now in China could have something to do with the economy but only in a way where bureaucrats always hesitate and rethink stuff when anything new crops up. China needs energy, clean energy, and, as it has been doing successfully for the past thirty years, will use investment from anywhere to build the industry to a point where it will then assume it and use it for export. The paradigm is there. History shows us that cash cows weather recessions. The delay for the PPA is only tied in a very small way to the present situation. People still eat, use electricity, and die of lung disease.
Let's say your theory was correct, but now the price of oil has gone way down and the Western financing of US companies in China is drying up. That was my point as the game changers. China may feel somewhat less enthusiastic, and WWEI may not be able to deliver anytime soon......
WWEI is a Vancouver based group with financial connections and know how and an electric utility guy. In China they have a business end comprised of a guy who ran the local port of say major size and a woman who is high up in private sector business. If the past is anything to go on, ie Juhl and Wnd, when you get a PPA or contract to buy electricity at the going rate, you can obtain financing based on that as a security. WWEI is doing this for the first time. There's the rub. The paradigm, however, is established. China needs the clean electricity, this is the one area in world finance that is financing is spite of the market movement, Obama will be in soon and the US will be hell bent for leather in the direction of wind power, T Boone Pickens is committing 10 billion with 2 billion already spent, and I stand to make buckets of money; so it is sure to work. Tammy where is that @#$$#@%^****PPA?