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amal.singh
amal.singh
Articles (91) 

GE: Growth Plans Based On Renewal Energy

November 22, 2014 | About:

Over the past we have seen many industries venturing into the market of renewal energies. As per the market research, renewal energy is anticipated to grow at a CAGR of 7.5% from 2010 to 2015 and is anticipated to be worth $614.92 billion by 2015. This market, as per GWEC (Global Wind Energy Council) reports, the cumulative global capacity has reached 318,137 MW this is a gains by 200,000 MW in past 5 years. Although market did decrease in 2013 with only 12.5% growth the prospects in 2014 and beyond are quite bright.

General Electric (NYSE:GE) is a company that is not new to the market of renewal energies. GE Energy a subsidiary of GE is the company that manufactures various equipments that are like a backbone for any renewal energies projects. The company is a global leader as a manufacturer of wind turbines. GE Energy’s existing product portfolio consists of wind turbines with rated capacities that ranges from 1.5 MW to 4.1 MW and also provides total solution related to wind power generation and grid integration with operation and maintenance of implemented wind power stations. The company has decades of experience with over 18,500 wind turbines installed globally.

Milestones Achieved in Brazil

Wind is one of the fastest growing energy resources in the country of Brazil. GE with the use of its high end wind turbines has been successfully harnessing wind resource to generate power from the various wind farms in Brazil. GE recently commissioned 1 GW (Gigawatt) wind power project in Brazil. GE connected 381 wind turbines to the Grid in Brazil that provides 600 MW (MegaWatt) of power capacity. 184 of these were connected in a record time of one week for a wind farm developer Renova Energia.

Recently the Brazilian wind energy association declared that the country has recorded 5GW of installed wind power plant and is anticipated that by 2018 it should achieve 15GW of successful wind power generation. This will provide more business to GE in Brazil for next few years.

GE has also declared that it produced 1,000 wind turbine hub in Brazil, this is a part of the 800MW wind power projects contract between the Government of Brazil and GE. This hub connects the rotor to the tower and nacelle of the wind turbine.

More Growth

China is one country where the growth is phenomenal for wind power projects. The Chinese government has been promoting the wind power projects and has increased the target which is to be implemented by 2020. The revised target is set to 200GW and this is good news for the industry. GE has a strong presence in China for renewal energy projects. Turbines manufactured by GE have helped the country in building over 1000 wind turning. GE will always be the preferred choice for various wind power projects declared by the government, mainly as it strong performance of the turbines in China.

India is a country where the wind power projects “wind mission” is the key focus of the government. GE, with its strong presence in the country is benefiting from the Indian government policies pertaining to Wind Power generation projects. GE Energy Financial service has invested as equity participation in 3 various wind power projects in India, these projects are called as Atria Power Wind Projects. These projects are under construction in India and have been well supported by the Government of India. The combined capacity of the wind farms will generate around 126 MW of power. This project will assist the Indian Ministry of New & Renewal Energy Programs. This program has a major objective to generate wind power at competitive price with priced grid-interactive wind power through feed-in tariffs.

Furthermore various other countries like Mexico and few African countries are also focused on the wind power generation projects. Fuand Mexico’s electricity sector is also set to raise its target of wind power project in the coming years as compared to only 90 MW in 2013. Boom is expected in African countries where new wind power projects installation is constantly increasing and is anticipated to grow more in future. These projects are mainly in countries led by South Africa, Egypt, Morocco, Ethiopia, Kenya and Tanzania.

GE has earlier declared that it will be investing over $1 billion as equity participation in various wind power projects globally.

Conclusion

GE has an established product portfolio for wind power generation projects. The company also provides total solution, which involves inception to implementation of wind power projects and also long terms maintenance of the wind farms and grids. This is one reason that GE is always preferred for turkey projects for construction of wind farms and power grid connection solutions. The future of wind power is bright this adds on to the revenue growth of the company and sustained growth from the long maintenance contract which GE bags post completion of the projects. From an investor’s point of view, the stocks of GE can always add extra power to the portfolio and provide long term returns. I would suggest a buy.


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