Wind Power Companies

Daniel asks…

How do wind power companies make business?

How do wind power companies exactly make business? What I mean is, first of all can they just decide to build a wind turbine somewhere, if they purchase the land area, or do they always build on request of the government? After building the wind turbines, do they get to keep them and earn the revenues of the electricity produced or are the turbines owned by the state and they earn the revenues?
thanks for help

Windmill Farms answers:

As well as providing technical assistance and support to energy businesses, GVEP also provides direct access to new sources of capital to help them achieve long term sustainability.

In the developing world, the lack of access to capital is a key issue holding back the progress of small businesses – particularly in the energy sector.

At GVEP we believe that private capital is fundamentally the right solution, but that, in various ways, we can make a contribution to help mobilise that private capital.

Laura asks…

How exactly do wind and solar power companies make their money?

I only invest in small-cap energy based companies like oil, gas, petroleum, and more recently, wind and solar power.

What I would like to know is how exactly do wind and solar power companies make their money? Please, I’d like to understand the industry a bit better. Thanks!

Windmill Farms answers:

Your question is fairly general. Perhaps you would like to read these introductory articles and then post more specific questions:


George asks…

Why are oil and coal companies greedy but solar and wind companies altruistic?

Wouldn’t it benefit solar and wind power companies to fund so called “Research” to scare people with the phantom event of Global Warming?

Windmill Farms answers:

Obama knows there are TRILLIONS to be made over global warming in the long run.

We all will be paying for his scam.

Michael asks…

How to contact wind power company for setting of wind power plant in my land ?

I am an engineering grduate.I have land of 20 acres in my village.its 130 km from Mumbai.
i have 2-3 ideas in my mind. first i can set up wind power stations with collabration pvt compnys.
but for that i dont have any contact with the company.
Any body can guide me for setting of this goal
Any kind of suggestion are always welcome

Windmill Farms answers:

Run a 90 day wind velocity analysis and send the results to any wind harvesters you can locate. Don’t indulge in any hot air pontification.

Linda asks…

What’s the reason to subsidize alternative energy companies?

I’m not asking about raw research that occurs at universities – like discovering totally new technologies.

I’m wondering if there are any good reasons to subsidize existing solar, nuclear, wind, etc power companies. By reducing the price of nuclear power below the market equilibrium, people consume more nuclear power than they otherwise would, so there’s a deadweight loss.

If you just want to discourage gas consumption, wouldn’t a gas/petroleum tax be more efficient? That way private firms can optimally choose between other options.

Windmill Farms answers:

Your question is essentially one that should be taken up as a question of economics and not the nuts and bolts of “alternate fuel vehicles.”

There are several reasons. One already mentioned is that most energy companies already get subsidies. But these are larger than the obvious grants and discounts, (credits on taxes.) In economics there is a concept of “externalities.” 1 Polution is cited as a prime example of an externality. It is part of the manufacturing/refining process but the cost of polution is not figured into the end product. (health issues, the costs of clean ups and filtration.) When I go out and buy an air filter I am to some extent paying for someone’s polution. The water treatment plant is a cost that taxpayers bear for polution that has been done upstream.

To the extent that some alternative energy options do not produce externalities they are being asked to compete against an unfair advantage. Subsidies attempt to level the playing field.

There is another aspect as well. To the extent that alternative energy development is a social benefit it may be something that we should socially promote ie: subsidies.

Last, any new company will have difficulties competing with an existing company where economies of scale, and product identification 2 are already in place.

Sometimes it is difficult to put a number on some of these costs/benefits. The alternative may be to start taxing companies for the polution that they produce and eliminating any subsidies that they currently get. Undoubtedly someone would complain when an existing benefit is taken away. Business as usual is hard to change.

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