It's no secret that renewable energy, in this case, wind power, is a long-term growth industry. Indeed, leading energy industry bodies such as the U.S. Energy Information Administration (EIA) believe that, on average and without tax credits, onshore wind power will make more financial sense than combined cycle (gas and steam) power within the next 20 years. Wind power has long-term growth prospects, but global onshore wind power installations will be flat in the medium term, while global offshore installations will likely only take off in 2025 and afterward.
A look at the industry dynamics in the wind power sector, and a few stocks investors might be tempted into.
Vestas said on Wednesday it would reduce its production capacity in United States, which entails cutting 450 positions in three factories across Colorado, as the company cited lower near-term demand. "With a larger fleet under service and lower demand in the near-term, we are therefore consolidating our setup in Colorado," Chief Operating Officer Tommy Nielsen said in a statement. Shares in Vestas were down 1.28% at 1334 GMT in Copenhagen.