Wind Investment Revolution: Profits Soaring High
David Vogel
Solar Energy Mentor I Streamlining Federal Grant Approvals & Material Distribution for Commercial Solar Projects I Retired CEO Project SunRize I Pastor Church of Unity Society
Dear Business Leader:
Today we are going to dive deep into the whirlwind of opportunities in the wind energy sector, a veritable ocean of potential that's stirring up the investment waters.
With a robust gust from recent advancements and a surge in investments, wind projects are not just about generating electricity; they're spinning up a storm of financial opportunities too.
Here's why casting your investment net into the wind energy sector might just be the catch of the day.
In 2022, global investments in wind energy technologies reached a staggering $175 billion, showcasing a considerable increase over the past years. This financial windfall is driven by both onshore and offshore wind projects, which together represent a significant share of the total investment in renewables. Specifically, solar photovoltaic attracted 43% of the total investment, followed by onshore and offshore wind with 35% and 12% shares, respectively.
The U.S. has been particularly buoyant, adding 11.7 MW of new distributed wind energy capacity across 15 states, a testament to the sector's growing appeal.
In 2023, the wind energy sector demonstrated robust growth and continued expansion, marking significant milestones in both capacity and investment.
The Global Wind Energy Council's Global Wind Report for 2023 highlighted that it was a record-breaking year for wind energy, with more than 100 GW of new capacity added worldwide for the first time ever, projecting an upward trend with expectations to add 680 GW of new capacity from 2023 to 2027.
This represents a year-on-year growth of 15%, showcasing the wind energy sector's accelerating pace toward enhancing global renewable energy capacity.
In Europe, the wind energy sector experienced significant growth with 18.3 GW of new wind power capacity installed in 2023, where 79% was onshore. This growth underscores Europe's commitment to meeting its 2030 climate and energy targets, although challenges remain in achieving the set goals. Germany led the installation of new capacity, particularly in onshore wind, followed by the Netherlands with substantial offshore wind installations.
Looking forward, Europe aims to install 260 GW of new wind power capacity between 2024 and 2030, with a significant portion of the annual build-out expected to ramp up towards the end of the decade.
A fascinating trend in the sector is the rising interest from non-utility buyers, including corporations, in wind energy. In 2022, corporate commitments to wind energy surpassed utility purchases, buying electricity from at least 44% of the new wind capacity installed. The burgeoning size and power of wind turbines have also contributed to making wind energy more cost-competitive, with the average capacity of newly installed wind turbines growing 7% from 2021 to 2022.
On the offshore front, the U.S. saw its offshore wind energy projects' capacity increase by 15% from the previous year to 52,687 MW. If fully developed, this could power over 18 million American homes. The estimated levelized cost of energy for commercial-scale offshore wind projects in the U.S. has declined by 13% to an average of $84/MWh, making it increasingly competitive.
Leading the charge in the wind energy sector are giants like Orsted, the world's largest developer of offshore wind power, and Vestas Wind Systems, one of the largest manufacturers of wind turbines globally. Other major players include General Electric, which installed 53% of all land-based wind turbines in the US in 2020, and NextEra Energy, with 119 operational wind farms.
Investing in wind energy comes with its fleet of benefits and considerations. The sector offers a renewable and cost-effective source of energy, promising long-term returns. It's also a key player in the green investment portfolio, appealing to investors keen on supporting environmental sustainability.
Navigating the investment seas requires an understanding of the various channels available, from direct stock investments in leading companies to mutual funds and ETFs that offer broader exposure to the wind energy sector. For those seeking fixed-income opportunities, green and climate bonds issued by corporations or government bonds funding wind energy projects offer attractive alternatives (.
The wind energy sector is riding a powerful current of growth and innovation, fueled by increasing investments and technological advancements.
Whether you're a seasoned investor or just dipping your toes into the renewable energy waters, the wind sector offers a promising and sustainable port of call for your investment journey.
Seizing the Breeze: A Golden Opportunity for Small Investors in Wind Energy
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President Joe Biden recently announced a significant injection of $145 million into the Rural Energy for America Program (REAP), specifically aimed at bolstering wind projects among other renewable energy initiatives for agricultural producers and rural small business owners. T
his move is particularly geared towards enhancing energy efficiency, generating new income, and fortifying the resilience of operations in rural areas.
This funding is part of the Biden Administration's broader Investing in America agenda, underscoring a substantial commitment to rural prosperity, economic development, competition, and sustainability.
The REAP grants are designed for projects that are sized at $2 million or less, offering an attractive proposition for small investors looking to leverage government benefits. With the inclusion of tax credits and accelerated depreciation under the Tax Cuts and Jobs Act, investors can anticipate an approximate 100% ROI from government incentivesI, making it an extraordinary opportunity for those interested in renewable energy ventures .
It's worth noting that this financial support is primarily allocated for farmers, marking a strategic move to expedite and favor wind grants in farm country.
Given this focus, and the current environment where the U.S. Government is actively facilitating such grants, it represents a golden opportunity for astute investors.
For those recognizing the potential but seeking professional management of their investment, the SunRize Green Fund I emerges as an appealing option, planning to capitalize on this opportunity (see the postscript below my signature).
Whether investors choose to navigate this landscape independently or prefer the expertise of professionals, the current climate presents a favorable moment to explore and invest in wind energy projects within the agricultural sector.
Stay well. Swim strong!
Warmly,
David
P.S. Announcing The SunRize Green Fund I
For an Elite Inner Circle of Investors
Preferential Returns.
Accredited investors only.
Potential return on investment of 100% or more.
? Published by: David Vogel, in Wolfeboro, New Hampshire
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