Despite a regulatory process dating back to 2009 , NRG Energy Inc (NYSE:NRG)’s website states that the “active development of its offshore wind options” has been on hold since January 2012 , and a December 2011 release put wind energy on hold as federal loan guarantees disappeared . NRG Energy Inc (NYSE:NRG) had also expected wind production tax credits to get the ax in 2012 , but they’ve been extended through at least 2013 .
Diversity while you wait
With no one sure when and where offshore wind will permanently pop up, an investment in turbine manufacturer General Electric Company (NYSE:GE) may be the smartest move today. While the company is far from a pure play on offshore wind, its Power & Water division (which includes wind) accounted for 19 % of 2012 revenue. Wind sales even got a specific shout-out in the company’s latest annual report as sales increased 10% last year . The company already has a 4.1 MW turbine on the market “specifically designed for the offshore environment” with lower operating costs and reliable slow speed components .
Is the answer blowing in the wind?
Offshore wind power may be a long way off – but its potential is here today, and prices are dirt cheap. With a lease in the bag, Dominion Resources, Inc. (NYSE:D)’s long-term vision could pay off in the years to come. The speed and scale at which offshore wind becomes viable will depend largely on government loans and tax credits. But if our nation takes its search for a cleaner, more independent energy source seriously, offshore wind should continue to see support in the years to come.
The article 1 Energy Powerful Enough to Electrify our Nation – Four Times Over originally appeared on Fool.com is written by Justin Loiseau.
Fool contributor Justin Loiseau owns shares of General Electric Company. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo.The Motley Fool recommends Dominion Resources (NYSE:D). The Motley Fool owns shares of General Electric Company.
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