Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
in the wind sector have come from a combination of factors:

  • very real increases in the cost of inputs (steel, cement);

  • a relative scarcity in the market, caused by a combination of (i) lowish investments by manufacturers stung by the previous boom a couple years ago that ended in tears when the US Congress failed to renew the PTC and destroyed the market - twice - leaving manufacturers first with over capacity for a year, then with painful pression to deliver quickly the next and (ii) massive long term orders by financial investors who are effectively hoarding production capacity and then allocating to their own projects or passing it on to other projects (often by buying them out, using their access to turbines)

  • high liquidity in the markets, which allows investors to borrow a lot, pay more for projects, and bid up the price for turbines when necessary.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Fri Jul 13th, 2007 at 10:33:46 AM EST
[ Parent ]

Others have rated this comment as follows:


Occasional Series