Investment in Wind Power Surges, Demand for Talent in Renewable Energy Grows
Wind has emerged as the fastest growing source of renewable energy around the world. Globally, rapid growth is predicted in the wind market and the United States is one of three nation’s leading future growth in the industry, reports Reuters. In fact, the Department of Energy projects that wind power is capable of becoming a major contributor to America’s electricity supply over the next three decades.
In the latest developments, Blackstone has announced plans to sink more than $1.5 billion into wind energy. Meanwhile, GE Energy Financial Services is investing $100 million in three wind farms. One industry veteran now recruiting for executive search firm, A.E. Feldman, says, “Very few people understand green technologies yet but the wealth of individuals and institutional investors getting involved is enormously high. There is a big rush of people and money into this area. It’s still very early, but interest in alternative energy is absolutely growing and attention to the sector will only increase.” As a result, the firm says investment professionals who understand the burgeoning industry and can funnel money into these businesses are hot commodities.
Investing in Wind
Private equity firm, Blackstone plans to invest more than $1.57 billion in a project to build wind farms in the North Sea to generate electricity, reports Reuters, citing people familiar with the matter.
According to the report, Blackstone plans to take a stake in the “Meerwind” project to build roughly 80 wind farms with a capacity of 400 megawatts off the German island of Helgoland. The owners of the project, however, privately-held German investment company Windland Energieerzeugungs GmbH, and Blackstone declined to comment.
Meanwhile, GE Energy Financial Services recently announced it will invest a total of $100 million in three wind farms under construction in northern and western New York. The unit of GE revealed a goal of investing $6 billion in renewable energy by 2010. Now, with this latest investment, GE Energy Financial Services surpasses the $4 billion mark.
“We have reached the $4 billion milestone just five months after hitting $3 billion, confirming that renewable energy is our fastest-growing business,” said Alex Urquhart, President and CEO of GE Energy Financial Services.
Including the three new farms, GE Energy Financial Services has invested or committed to invest equity worldwide in 76 wind farms, with a total capacity of more than 4,000 megawatts.
When the three wind farms begin commercial operation, the GE unit projects they will increase the wind producing capacity of New York State by 47%. Using 1.5-megawatt GE wind turbines, they will generate a combined 330 megawatts of energy—enough to power more than 110,000 average New York homes. GE Energy Financial Services says the farms will avoid 385,000 tons of greenhouse gases per year – the equivalent of taking 64,000 cars off the road.
Pickens: Alternative Energy Critical for the Future
Texas oilman, T. Boone Pickens, has emerged as a staunch supporter of wind energy. Pickens recently launched a self-financed, $58 million campaign called the Pickens Plan to end the nation’s dependence on foreign oil and promote renewable energy, namely wind.
He has already announced he’s sinking $2 billion into a wind farm in Texas. Mesa Power LLP, a company created by Pickens, placed an order with General Electric to purchase 667 wind turbines capable of generating 1,000 megawatts of electricity, enough to power more than 300,000 average U.S. homes. In a statement, GE says the agreement represents the first phase of the four-phase Pampa Wind Project that will become the world’s largest wind energy project, with more than 4,000 megawatts of electricity, enough for 1.3 million homes. When all phases of the project are completed as projected in 2014, the wind farm will be five times as big as the nation’s current largest wind power project, covering some 400,000 acres in the Texas Panhandle.
“Building wind facilities in the corridor that stretches from the Texas panhandle to North Dakota could produce 20% of the electricity for the United States at a cost of $1 trillion. It would take another $200 billion to build the capacity to transmit that energy to cities and towns. That’s a lot of money, but it’s a one-time cost. And compared to the $700 billion we spend on foreign oil every year, it’s a bargain,” states Pickens on his web site.
Pickens believes that developing alternative energy projects is critical for the nation’s future. “You find an oilfield, it peaks and starts declining, and you’ve got to find another one to replace it. With wind, there’s no decline curve,” he says.
The Power of Wind
A recent Forbes report states that 3 million wind turbines would be needed to replace a “cubic mile of oil”- a metric roughly equivalent to the amount of oil consumed worldwide each year, citing the nonprofit research institute, SRI International.
Still, the Department of Energy contends that wind power is capable of becoming a major contributor to America’s electricity supply over the next three decades. The DOE says that achieving a 20% wind contribution to U.S. electricity supply would:
- Reduce carbon dioxide emissions from electricity generation by 25% in 2030
- Reduce natural gas use by 11%
- Reduce water consumption associated with electricity generation by 4 trillion gallons by 2030
- Increase annual revenues to local communities to more than $1.5 billion by 2030
- Support roughly 500,000 jobs in the U.S.
Under the DOE’s 20% wind scenario, installations of new wind power capacity would increase to more than 16,000 megawatts per year by 2018, and continue at that rate through 2030.
Policy Support Critical
The American Wind Energy Association (AWEA) released a statement which contends that large scale energy projects (such as Pickens’ wind vision) are possible, but policy support is essential to achieving the DEO’s projections. The AWEA contends that ramping up wind power quickly on a large scale is feasible if the government enacts the correct policies, starting with renewal of the production tax credit.
Large scale renewable energy projects rely upon the Federal Production Tax Credit (PTC), which provides incentives for development of renewable energy. The problem lies in the fact that large scale renewable energy projects require commitments years in advance, while Congress has only extended the Production Tax Credit one or two years at a time. Advocates for large scale energy projects are pushing for Congress to enact a long-term extension of the Production Tax Credits.
“Wind power has become a key option for our country,” said AWEA Executive Director Randall Swisher. Swisher goes on to say that, “In order to make this happen, however, the U.S. government will need to play its part and enact short- and long-term policies to transform many of our current practices. Of critical and immediate importance, is an extension of the federal production tax credit, so that the industry can move ahead with planned investments and keep people at work. Of equal importance will be longer-term policies to plan for more transmission to bring large amounts of wind power from windy areas to population centers.”
The Economics of Wind
“Wind farms provide not only clean energy but more jobs,” said Kevin Walsh, Managing Director and leader of renewable energy at GE Energy Financial Services. “Local people have already been hired to construct the wind farms, build and plow the roads, and eventually maintain the projects. As we showed in a study we released last month, wind farms will create tax revenues for local and federal governments. In a world with rising fuels costs, this new form of energy—and the millions of dollars in economic benefits it provides—is truly America’s new cash crop.”
The AWEA quotes Chuck Grassley (R-IA) as saying, “Wind energy has not only helped power many parts of Iowa, but it has provided millions of dollars in economic activity to struggling communities. Wind is an affordable and inexhaustible source of domestically produced energy. We must do everything possible to capture and grow this renewable source of energy all the way up the supply chain.”
“The U.S. wind power industry is a bright spot in our economy,” said AWEA Executive Director Randall Swisher. “Every megawatt of installed wind power creates employment in manufacturing, construction and operations as well as jobs in advertising, office support, environmental assessment and other related professions. America’s vast wind resources have barely been tapped, and we have only just begun to see wind’s potential to generate broad economic growth.”
Right now, A.E. Feldman is one step ahead of the latest developments in renewable energy and green technology. To learn more about these issues or inquire about existing and future job opportunities in this sector, the lines of communication are open. Contact Mitch Feldman, President of A.E. Feldman, and the firm’s cutting edge energy recruiting team here.
