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GasBuddy News Article

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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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REPLIES (newest first)
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JoeKR Car icon
Champion Author New Jersey

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Message Posted: Nov 7, 2009 6:37:48 PM

So next we'll have a Wind cartel?
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Champion Author Louisiana

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Message Posted: Nov 7, 2009 2:10:45 PM

Solar, wind, hydro, etc., we need it all now
.
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Champion Author Orange County

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Message Posted: Nov 7, 2009 1:22:36 PM

that would blow if the big firms did that to the little windies; doesn't Hollywood award windies for that?
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Champion Author Tampa

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Message Posted: Nov 7, 2009 12:57:06 PM

Do not conserve to get US going again!!!!!!!
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bluebird1 Car icon
Champion Author Toronto

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Message Posted: Nov 7, 2009 12:56:14 PM

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.
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arvo87 Car icon
Champion Author New Mexico

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Message Posted: Nov 7, 2009 12:43:04 PM

more wind power the better,,, I do think its unfair to subsidise takeovers though
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Champion Author Pittsburgh

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Message Posted: Nov 7, 2009 12:41:30 PM

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]
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All-Star Author Corpus Christi

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Message Posted: Nov 7, 2009 12:37:27 PM

more green,
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Champion Author California

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Message Posted: Nov 7, 2009 12:34:14 PM

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).
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Champion Author Amarillo

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Message Posted: Nov 7, 2009 12:28:35 PM

So they will be blown away?
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Sophomore Author Manitoba

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Message Posted: Nov 7, 2009 12:27:35 PM

every company should be able to collect some kind of funding
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Veteran Author Texas

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Message Posted: Nov 7, 2009 12:24:57 PM

ok
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All-Star Author Illinois

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Message Posted: Nov 7, 2009 12:24:03 PM

Everybody should have one of their own.
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Champion Author Los Angeles

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Message Posted: Nov 7, 2009 12:19:09 PM

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?
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Champion Author Lincoln

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Message Posted: Nov 7, 2009 12:18:23 PM

Time will tell all.
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Champion Author Ohio

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Message Posted: Nov 7, 2009 12:17:12 PM

They sure have enough excuses.
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Champion Author California

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Message Posted: Nov 7, 2009 12:16:36 PM

There's always a price that someone will pay.
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All-Star Author Richmond

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Message Posted: Nov 7, 2009 12:15:44 PM

We'll see.
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Sophomore Author Chicago

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Message Posted: Nov 7, 2009 12:15:38 PM

For those of you who complain about "Obama Socialism", this is REAL Socialism!
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All-Star Author Calgary

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Message Posted: Nov 7, 2009 12:15:15 PM

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...
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Champion Author Saskatchewan

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Message Posted: Nov 7, 2009 12:13:48 PM

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!
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Sophomore Author Macon

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Message Posted: Nov 7, 2009 12:12:15 PM

this could help the usa
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Champion Author Pennsylvania

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Message Posted: Nov 7, 2009 12:11:06 PM

Looking at all methods.
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Champion Author Nevada

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Message Posted: Nov 7, 2009 12:04:40 PM

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.
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Veteran Author Ohio

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Message Posted: Nov 7, 2009 12:01:34 PM

Wind and Solar could be a big step toward Energy Independence.
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Champion Author Chicago

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Message Posted: Nov 7, 2009 11:58:46 AM

agree with lvpeg
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Champion Author California

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Message Posted: Nov 7, 2009 11:54:10 AM

I am all for wind energy!
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Champion Author Los Angeles

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Message Posted: Nov 7, 2009 11:51:44 AM

need to keep the alternatives coming. Every little bit helps.
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Champion Author Twin Cities

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Message Posted: Nov 7, 2009 11:51:37 AM

The small firms are going to have to buddy-up & start themselves a cooperative.
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All-Star Author Dallas

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Message Posted: Nov 7, 2009 11:49:05 AM

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.
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Rookie Author Colorado Springs

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Message Posted: Nov 7, 2009 11:47:57 AM

the little guys often get squashed by the big ones. it's not exactly good karma, but what can be done about it?
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All-Star Author Charleston

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Message Posted: Nov 7, 2009 11:47:33 AM

Sounds like another case of the big not wanting the small to make progress.
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Champion Author Houston

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Message Posted: Nov 7, 2009 11:45:57 AM

This seems to be how business works today
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Champion Author Portland

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Message Posted: Nov 7, 2009 11:45:46 AM

Everybody wants to buy low and sell high, not always possible though
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Champion Author Mississippi

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Message Posted: Nov 7, 2009 11:45:10 AM

It always starts with the little guy.
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Champion Author Colorado

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Message Posted: Nov 7, 2009 11:43:49 AM

Small business has a tough row to hoe.
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Champion Author Fort Worth

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Message Posted: Nov 7, 2009 11:42:51 AM

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!!!
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Champion Author Riverside

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Message Posted: Nov 7, 2009 11:36:55 AM

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)
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Rookie Author Riverside

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Message Posted: Nov 7, 2009 11:36:01 AM

Winds of Change
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Champion Author Oklahoma City

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Message Posted: Nov 7, 2009 11:35:17 AM


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.
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Champion Author San Antonio

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Message Posted: Nov 7, 2009 11:34:53 AM

Change you can depend on!
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Champion Author Akron

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Message Posted: Nov 7, 2009 11:31:58 AM

And to think that "We the People" are funding the gross profits of the Wall Street "investment" bankers once again.

Thanks a lot DC.
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All-Star Author New York

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Message Posted: Nov 7, 2009 11:30:30 AM

Any industry that is capital intensive, will have a huge barrier for small companies to overcome. While not impossible, its very unlikely.
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Sophomore Author Jackson

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Message Posted: Nov 7, 2009 11:29:58 AM

Money always goes to big special interest.
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Champion Author Cleveland

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Message Posted: Nov 7, 2009 11:28:04 AM

I guess this is the nature of any business.
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Champion Author Buffalo

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Message Posted: Nov 7, 2009 11:28:03 AM

Takeovers have been going on for years. Survival of the strongest!
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Champion Author Ontario

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Message Posted: Nov 7, 2009 11:20:29 AM

danny999; Too bad!
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Champion Author Florida

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Message Posted: Nov 7, 2009 11:19:01 AM

BIG SHARKS SWALLOW UP LITTLE MINNOWS.
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Champion Author South Carolina

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Message Posted: Nov 7, 2009 11:14:48 AM

I'd install a wind unit if I could, every house should have one!
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Champion Author Ohio

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Message Posted: Nov 7, 2009 11:14:30 AM

columbus could tax ohio pipelines
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