U.K analysts are suggesting that by 2013, the installation of offshore wind farms will drop 93%. The slump is being predicted by an equal drop in sales of equipment used to construct the wind towers, which are typically ordered 2-3 years before construction.
The industry believes this new “wind hiatus” could potentially last several years and cause the loss of thousands of specialty jobs.
Across the ocean in Canada, a different green energy industry is experiencing an opposite trend.
The shares of Canadian geothermal companies rose steeply this week, suggesting the recovery of an industry that had previously been largely ignored in Canada. As of recently, the green energy focus in Canada, especially in Ontario with its Green Energy Act, has been aimed more at wind and solar power generation.
At the Toronto Stock Exchange this week, US Geothermal’s shares rose nearly 35%, Magma Energy Corp climbed 14%, and Nevada Geothermal power Inc. went up 11%. These sound like American companies, but they are officially listed as Canadian
While other Canadian renewable energy industries, including wind and solar, experienced a year of steady inclines, Geothermal struggled right out of the gate, dropping nearly 50% throughout the first three quarters of 2010. Now this trend seems to be changing as the Canadian market begins to embrace Geothermal as a profitable enterprise.
Though these two trends are continents apart, they do provide evidence that an unconditional embrace of wind and solar, at least for the time being, is beginning to wane, and is causing investors to seek alternatives.
Admittedly, market level rumblings like this are very early on in the process of actual energy implementation. It may very well be several years, if ever, before their effects ever materialize. That being said, wind energy’s fall from grace in the U.K and geothermal’s rise in Canada does provide a glimpse into the future of renewable energy implementation, and what industry may actually end up taking over large-scale energy production.
- Geothermal energy stocks on the boil in Canada (reuters.com)
- What the election means for renewable energy (money.cnn.com)
- BAY STREET-Geothermal power waiting for its renaissance (reuters.com)