Bursting the wind bubble
This is a fascinating video that sets out why wind power is not the energy panacea we’re told it is:
Specifically it demonstrates that a) wind power is more expensive than other forms of energy; b) that the economic case for it only makes sense if developments are heavily subsidized; and c) that as subsidies drop, so does the investment case for wind power – along with the share prices of companies in the sector. The video addresses offshore wind but the situation with onshore is identical.
Just a couple of examples from the video. TPI Composites Inc. is a US company that makes composite wind blades for turbines. In February 2021 its share price peaked at $70 a share – today it trades at around 75-80 cents a share, a drop of 99%.
Ørsted A/S, a Danish company, is the world’s largest developer of offshore wind projects. In January 2021 it was worth 1351 kroner a share – now it’s worth around 306 kroner. Well over three-quarters of its value have been wiped out, as investors realise that governments can no longer afford to back renewable energy with unrealistic subsidies.
This raises an interesting question. Galileo Empower’s plans are funded by investment managers in Australia and New Zealand, who have a responsibility for their clients’ money – mostly the pensions of ordinary people. If they’re doing their job, they already know that the return on these speculative developments (the Mynydd Mawr scheme doesn’t even have a planned grid connection) is somewhere between shaky and non-existent.
When are they going to act on that realization? How big can the bubble grow before it bursts?