General Electric Co. expects increased competition and a reduction in subsidies by cash-strapped governments to lead to more companies exiting the wind and solar power businesses, but the industrial behemoth still sees growing long-term demand.
“There’s going to be a lot of casualties in the wind and solar businesses, there already are in solar,” John Krenicki, who leads GE’s energy division, told Reuters in an interview on Monday.
The U.S. may see an uptick in orders in 2012, prompted by the expiry of government incentives at the end of the year. However, the outlook for government support in the U.S. and Europe, in part do to economic woes, was not positive. Some analysts nevertheless believe GE and wind turbine rivals like Denmark’s Vestas and China’s Sinovel 601558.SS, face a difficult 2013 even if the U.S. incentive scheme is extended beyond end-2012.
Uncertainty about the tax credit had led to a rushed 2011 and 2012 wind farm building cycle, while new development plans for 2013 have plummeted, according to Denmark-based MAKE Consulting.
http://business.financialpost.com/2012/01/31/...solar/?__lsa=061acffd |
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