Wind-power companies lose luster with investors

“Not a winning formula going forward.”

Bloomberg reports:

The weather’s getting worse for wind-power companies, which are finding it increasingly difficult to attract venture backers.

U.S. investments in turbine farms and wind-energy businesses tumbled 38 percent last year to $9.7 billion, according to data from Bloomberg New Energy Finance. Venture capitalists have practically left the sector altogether. They invested only $177.6 million in wind startups last year, down 71 percent from the year before…

Wind companies in the United States also face the expiration of a tax credit at the end of this year, adding to their risk. The industry is seeking a four-year extension to the credit, which helps lower the cost of wind power to make it more competitive with traditional sources of energy.

Venture capitalists for the most part are steering their investments toward technologies that make existing energy sources more efficient and alternative-energy sources easier to deploy, Matlof said.

As far as investing in production itself, “that is not a winning formula going forward,” he said…

Read the entire report.

2 thoughts on “Wind-power companies lose luster with investors”

  1. Bill Maher says that those who invest in traditional energy will be broke and those who invest in renewables will make money. This was said to Lutz of GM. Looks like Maher will be wrong. Bet he does not have his money where his mouth is.

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