Summary
The solar and wind power industries are suffering the headwinds of financial freeze with production delays and cutbacks and increasing layoffs. Optimism and present government support are keeping much of the industries alive. Some businesses insist on looking ahead in new areas, like GE's interest in the small wind turbine maker, Southwest Windpower.
Analysis
The solar and wind power businesses are facing problems like most entities -tight credit and generic financial risk aversion strangling growth and leading to delayed or scaled back operations and layoffs. Nevertheless, strategic expectations and present government incentives are keeping thing alive and even have many companies looking forward.
The investment by GE in small wind power company Southwest Windpower is significant well beyond the few millions being placed. It's one of the first signs that wind turbines under 100 kilowatts of capacity are getting attention beyond small investors and businesses.
The small wind power business has been a modest affair in green energy, compared to the billions of annual revenue for large wind and photovoltaics, and hundreds of millions for solar thermal. The latest available data from the American Wind Energy Association showed US sales of a little over 9,000 units totalling $42 million in 2007. Last year's numbers are probably over 10,000 and around $50 million.
There are many issues with the small wind power market in terms of standards, quality and scale of economy, which are being steadily resolved. Involvement by a corporate and financial giant like GE shows it may be time for others to consider investing in this relatively undiscovered market.
