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Wind sector cash inflow may blow small firms away

REUTERS -- LONDON/FRANKFURT (Reuters) - Small wind energy companies could be taken over cheap because fresh funding for the sector is set to flow selectively to bigger names, placing them in a stronger negotiating position.

Analysts say the big firms are unwilling to pay premiums for the "pipeline" projects at the smaller players -- wind farms approved or awaiting construction -- which are normally added to current operating assets to arrive at a valuation.

Along with the solar sector, wind companies have suffered from a financial bottleneck over the past 18 months, hampering efforts to build cash-intensive wind farms, while customers have also delayed projects until next year due to funding problems.

But recent activity in the sector, such as the takeover bid for Britain's Novera Energy

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Submitted Nov 07, 2009 By: LetemEatCake

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JoeKR Champion Author New Jersey Posts:7,243 Points:1,415,465 Joined:Feb 2006	Message Posted: Nov 7, 2009 6:37:48 PM Ignore JoeKR Report Abuse So next we'll have a Wind cartel?
jwalkerh Champion Author Louisiana Posts:4,307 Points:1,009,680 Joined:Oct 2008	Message Posted: Nov 7, 2009 2:10:45 PM Ignore jwalkerh Report Abuse Solar, wind, hydro, etc., we need it all now .
OHMS Champion Author Orange County Posts:10,791 Points:1,249,445 Joined:May 2005	Message Posted: Nov 7, 2009 1:22:36 PM Ignore OHMS Report Abuse that would blow if the big firms did that to the little windies; doesn't Hollywood award windies for that?
Cheepo Champion Author Tampa Posts:7,583 Points:2,671,740 Joined:Apr 2003	Message Posted: Nov 7, 2009 12:57:06 PM Ignore Cheepo Report Abuse Do not conserve to get US going again!!!!!!!
bluebird1 Champion Author Toronto Posts:13,418 Points:2,653,005 Joined:May 2004	Message Posted: Nov 7, 2009 12:56:14 PM Ignore bluebird1 Report Abuse Subsidizing big co.'s to take over smaller ones is a future nightmare to unfold...not only reduces competition but stifles innovation & variety. Here, environmentalists are stifling wind power as well (I think its mainly the 'not in my backyard' syndrome but may be more to it) & was unexpected. They site everything from bird migratory paths, noise (guess not a quiet as a nuke????), magnetic fields, extra wiring etc. Not sure if they are on board for anything but conservation, but you have to make something before you can 'save' it.
arvo87 Champion Author New Mexico Posts:2,940 Points:681,465 Joined:Jul 2008	Message Posted: Nov 7, 2009 12:43:04 PM Ignore arvo87 Report Abuse more wind power the better,,, I do think its unfair to subsidise takeovers though
357revo Champion Author Pittsburgh Posts:15,080 Points:1,919,340 Joined:Sep 2006	Message Posted: Nov 7, 2009 12:41:30 PM Ignore 357revo Report Abuse A lot of the reasoning behind the money going to the big operators is so much BS. The more probable reason is that the big companies have the resources to grease the palms of the politicians writing the legislation to finance the 'green revolution'.... which is the only way that wind energy is cost-effective. Big companies are waiting for the big money to get appropriated, so they can get it. If necessary, they'll buy up a small company that's got innovative technology under patent. More likely, they'll just suck up the small companies to eliminate competition. [Edited by: 357revo at 11/7/2009 12:41:50 PM EST]
SgtV All-Star Author Corpus Christi Posts:768 Points:158,170 Joined:Aug 2008	Message Posted: Nov 7, 2009 12:37:27 PM Ignore SgtV Report Abuse more green,
MalibuGordie Champion Author California Posts:5,078 Points:1,052,310 Joined:Sep 2008	Message Posted: Nov 7, 2009 12:34:14 PM Ignore MalibuGordie Report Abuse This is called "Economy of Scale". Big companies can command greater resources, so they can deliver more of something quicker and usually cheaper. Not to mention the appropriate legislators relative that works for the company (and probably owns shares in the company).
Tutootin Champion Author Toronto Posts:7,756 Points:2,611,405 Joined:Jun 2004	Message Posted: Nov 7, 2009 12:30:58 PM Ignore Tutootin Report Abuse tucker355, I totally agree!!
Dipstick1 Champion Author Amarillo Posts:6,621 Points:1,759,885 Joined:Jan 2006	Message Posted: Nov 7, 2009 12:28:35 PM Ignore Dipstick1 Report Abuse So they will be blown away?
tucker355 Champion Author Manitoba Posts:1,153 Points:314,435 Joined:Feb 2009	Message Posted: Nov 7, 2009 12:27:35 PM Ignore tucker355 Report Abuse every company should be able to collect some kind of funding
DieselCash All-Star Author Texas Posts:960 Points:120,980 Joined:Sep 2009	Message Posted: Nov 7, 2009 12:24:57 PM Ignore DieselCash Report Abuse ok
dougrusty All-Star Author Illinois Posts:711 Points:351,825 Joined:Mar 2008	Message Posted: Nov 7, 2009 12:24:03 PM Ignore dougrusty Report Abuse Everybody should have one of their own.
AC-302 Champion Author Los Angeles Posts:21,253 Points:2,450,715 Joined:Aug 2004	Message Posted: Nov 7, 2009 12:19:09 PM Ignore AC-302 Report Abuse Interesting that the subsidies are going to go to big companies, not the smaller ones actually doing the legwork. Sorry? Why are their subsidies at all?
Jizme Champion Author Lincoln Posts:7,509 Points:2,437,820 Joined:Oct 2004	Message Posted: Nov 7, 2009 12:18:23 PM Ignore Jizme Report Abuse Time will tell all.
pricechecker08 Champion Author Ohio Posts:5,525 Points:1,236,850 Joined:Jan 2008	Message Posted: Nov 7, 2009 12:17:12 PM Ignore pricechecker08 Report Abuse They sure have enough excuses.
sg413 Champion Author California Posts:2,029 Points:450,160 Joined:Apr 2008	Message Posted: Nov 7, 2009 12:16:36 PM Ignore sg413 Report Abuse There's always a price that someone will pay.
skyhawkcam All-Star Author Richmond Posts:983 Points:553,315 Joined:Oct 2008	Message Posted: Nov 7, 2009 12:15:44 PM Ignore skyhawkcam Report Abuse We'll see.
sleepyt Champion Author Chicago Posts:2,293 Points:702,925 Joined:Mar 2008	Message Posted: Nov 7, 2009 12:15:38 PM Ignore sleepyt Report Abuse For those of you who complain about "Obama Socialism", this is REAL Socialism!
toyrunner300 Champion Author Calgary Posts:3,219 Points:1,214,835 Joined:Jan 2007	Message Posted: Nov 7, 2009 12:15:15 PM Ignore toyrunner300 Report Abuse Interesting, and same story as usual. Big firms will get everything and they will be able to raise price and make more money like they are doing with oil, so they won't any difference for us...
14of45SSR Champion Author Saskatchewan Posts:2,370 Points:829,040 Joined:Dec 2008	Message Posted: Nov 7, 2009 12:13:48 PM Ignore 14of45SSR Report Abuse That isn't fair for the small guy trying to make a buck! All the big guys are going to do is buy them up & shut them down so they can make big bucks! Resulting in us paying more than what we would have to!
rowing Champion Author Macon Posts:1,056 Points:629,930 Joined:Sep 2009	Message Posted: Nov 7, 2009 12:12:15 PM Ignore rowing Report Abuse this could help the usa
jimshell Champion Author Pennsylvania Posts:2,102 Points:591,945 Joined:Sep 2004	Message Posted: Nov 7, 2009 12:11:06 PM Ignore jimshell Report Abuse Looking at all methods.
EVBuddy Champion Author Nevada Posts:14,333 Points:2,567,565 Joined:Sep 2004	Message Posted: Nov 7, 2009 12:04:40 PM Ignore EVBuddy Report Abuse Is the government stupid? Solar farms will create jobs and cut down on global warming through less CO2 production, and the fuel is free. Electric rates may go down helping everyone's ecomony.
04tang Champion Author Ohio Posts:2,244 Points:494,325 Joined:Jul 2006	Message Posted: Nov 7, 2009 12:01:34 PM Ignore 04tang Report Abuse Wind and Solar could be a big step toward Energy Independence.
braves89 Champion Author Chicago Posts:5,320 Points:1,164,895 Joined:Apr 2008	Message Posted: Nov 7, 2009 11:58:46 AM Ignore braves89 Report Abuse agree with lvpeg
lvpeg Champion Author California Posts:13,004 Points:1,952,870 Joined:Aug 2006	Message Posted: Nov 7, 2009 11:54:10 AM Ignore lvpeg Report Abuse I am all for wind energy!
la90042 Champion Author Los Angeles Posts:2,402 Points:505,405 Joined:Nov 2008	Message Posted: Nov 7, 2009 11:51:44 AM Ignore la90042 Report Abuse need to keep the alternatives coming. Every little bit helps.
72_Monte Champion Author Twin Cities Posts:5,428 Points:1,531,205 Joined:Aug 2005	Message Posted: Nov 7, 2009 11:51:37 AM Ignore 72_Monte Report Abuse The small firms are going to have to buddy-up & start themselves a cooperative.
beckahrah All-Star Author Dallas Posts:648 Points:286,785 Joined:Apr 2008	Message Posted: Nov 7, 2009 11:49:05 AM Ignore beckahrah Report Abuse Wind power is good. Just be glad it's spreading. Its cheap, clean, and it reduces the need for foreign oil and reduces oil prices.
raftafarian Rookie Author Colorado Springs Posts:15 Points:16,795 Joined:Oct 2009	Message Posted: Nov 7, 2009 11:47:57 AM Ignore raftafarian Report Abuse the little guys often get squashed by the big ones. it's not exactly good karma, but what can be done about it?
BWD Champion Author Charleston Posts:3,116 Points:1,760,940 Joined:May 2004	Message Posted: Nov 7, 2009 11:47:33 AM Ignore BWD Report Abuse Sounds like another case of the big not wanting the small to make progress.
Prodaddy Champion Author Houston Posts:6,053 Points:1,430,045 Joined:May 2007	Message Posted: Nov 7, 2009 11:45:57 AM Ignore Prodaddy Report Abuse This seems to be how business works today
gasman50 Champion Author Portland Posts:6,500 Points:1,945,520 Joined:Nov 2005	Message Posted: Nov 7, 2009 11:45:46 AM Ignore gasman50 Report Abuse Everybody wants to buy low and sell high, not always possible though
hibsaw Champion Author Mississippi Posts:5,666 Points:1,213,990 Joined:Feb 2008	Message Posted: Nov 7, 2009 11:45:10 AM Ignore hibsaw Report Abuse It always starts with the little guy.
CharlieC08 Champion Author Colorado Posts:6,378 Points:1,151,175 Joined:Oct 2008	Message Posted: Nov 7, 2009 11:43:49 AM Ignore CharlieC08 Report Abuse Small business has a tough row to hoe.
Helms Champion Author Fort Worth Posts:4,724 Points:1,494,080 Joined:Jun 2005	Message Posted: Nov 7, 2009 11:42:51 AM Ignore Helms Report Abuse yeah...why don;t we get big oil to vuy them up....then they can crush the competition....and charge more for their products because its the only game in town...great plan....worked in the 50's and 70's and it could work again.....man how about another round of million dollar bonuses just for the great idea!!!
beachbumCA Champion Author Riverside Posts:10,459 Points:1,206,350 Joined:May 2008	Message Posted: Nov 7, 2009 11:36:55 AM Ignore beachbumCA Report Abuse This is how business works. Look at the auto industry. About 1905 we had over 100 auto companys. How many today? (Count only the ones that the government does not control)
wolfshadow12 Sophomore Author Riverside Posts:247 Points:79,440 Joined:Sep 2009	Message Posted: Nov 7, 2009 11:36:01 AM Ignore wolfshadow12 Report Abuse Winds of Change
LetemEatCake Champion Author Oklahoma City Posts:2,987 Points:766,010 Joined:Mar 2008	Message Posted: Nov 7, 2009 11:35:17 AM Ignore LetemEatCake Report Abuse tml721 from Dayton... Do you have an article you could share on this Wind Farm in Ohio. The numbers sound off...400 Windmills to power 600 homes? There is a problem here.
RedRam2005 Champion Author San Antonio Posts:5,691 Points:1,056,985 Joined:Dec 2007	Message Posted: Nov 7, 2009 11:34:53 AM Ignore RedRam2005 Report Abuse Change you can depend on!
jimgraham Champion Author Akron Posts:7,960 Points:1,512,945 Joined:Oct 2007	Message Posted: Nov 7, 2009 11:31:58 AM Ignore jimgraham Report Abuse And to think that "We the People" are funding the gross profits of the Wall Street "investment" bankers once again. Thanks a lot DC.
MahopacJack Champion Author New York Posts:5,900 Points:1,181,550 Joined:Feb 2008	Message Posted: Nov 7, 2009 11:30:30 AM Ignore MahopacJack Report Abuse Any industry that is capital intensive, will have a huge barrier for small companies to overcome. While not impossible, its very unlikely.
Daveyfudd All-Star Author Jackson Posts:873 Points:257,525 Joined:May 2008	Message Posted: Nov 7, 2009 11:29:58 AM Ignore Daveyfudd Report Abuse Money always goes to big special interest.
playtimeCLE Champion Author Cleveland Posts:5,898 Points:1,091,400 Joined:Nov 2008	Message Posted: Nov 7, 2009 11:28:04 AM Ignore playtimeCLE Report Abuse I guess this is the nature of any business.
Patch44 Champion Author Buffalo Posts:5,603 Points:1,356,035 Joined:Oct 2007	Message Posted: Nov 7, 2009 11:28:03 AM Ignore Patch44 Report Abuse Takeovers have been going on for years. Survival of the strongest!
bicycler Champion Author Ontario Posts:12,685 Points:2,206,320 Joined:May 2005	Message Posted: Nov 7, 2009 11:20:29 AM Ignore bicycler Report Abuse danny999; Too bad!
danny999 Champion Author Florida Posts:6,345 Points:1,171,085 Joined:Oct 2008	Message Posted: Nov 7, 2009 11:19:01 AM Ignore danny999 Report Abuse BIG SHARKS SWALLOW UP LITTLE MINNOWS.
REKEY Champion Author South Carolina Posts:6,201 Points:1,233,280 Joined:May 2008	Message Posted: Nov 7, 2009 11:14:48 AM Ignore REKEY Report Abuse I'd install a wind unit if I could, every house should have one!