Wind Power Hits a Trough

Jeffrey Ball — Mon, 04 Apr 2011 23:04:25 +0000

Gabriel Alonso, who runs one of America’s biggest wind-farm developers, often reminds his employees their goal isn’t to stage a renewable-energy revolution.

“This is about making money,” the chief executive of Horizon Wind Energy LLC tells his troops. And right now, his strategy is to retrench.

After years of blustery growth, wind power is facing a blow-back in some of its major markets. It is reeling from lackluster electricity demand in many mature economies, rock-bottom prices for competing natural gas in the U.S. and uncertainty throughout much of the world about government subsidies. Companies that make wind turbines are slashing production at some plants and reconsidering previous expansion.

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First Solar: Are Their Customers Piling Up Inventory?

Eric Savitz — Fri, 12 Dec 2008 18:03:27 +0000

ThinkEquity’s Jonathan Hoopes this morning made an aggressive call on First Solar (FSLR), asserting that a “high-level inventory analysis” of six of the company’s major customers lead him to conclude that there maybe be substantial numbers of First Solar panels sitting in customer warehouses. And he says that they aren’t likely to move out soon, “given weakening economies, lower natural gas prices, higher interest rates and tougher underwriting requirements.”

Hoopes contends that global solar demand headwinds are unlikely to subside for at least the next few quarters. “Take-or-pay contracts are only as good as the counter-party’s willingness and ability to do either,” he notes. Hoopes points out that Q-Cells, on its Dec. 9 conference call, said it will allow a flexible delivery schedule for customers and will also offer discounted prices to help share the burden.”

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Wind Power Hits a Trough

First Solar: Are Their Customers Piling Up Inventory?