Wind farm stocks due to Labour lifting ban on on-shore wind farms

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8th Jul '24 by N0vice1Nvest0r

21 comments 895 reads

ive done a quick check of the largest on-shore wind projects and the list includes;

Vestas Wind Systems A/S (CPH:VWS)

General Electric Co (NYQ:GE)

Oersted A/S (CPH:ORSTED)

Brookfield Renewable Partners LP (NYQ:BEP)

and potentially Renewables Infrastructure (LON:TRIG)

With these companies ive found the most commonly used to be VWS. All these appear to be currently at a local low, but this may change with the lifting of the ban.

Can anyone think of other firms/links to potential businesses that may benefit from this lifting of the ban?

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N0vice1Nvest0r

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Absolute novice investor that is trying to slowly grow wealth. Reading as much as I can, to learn from those who know, those who have done it and those willing to teach... more »

21 comments

N0vice1Nvest0r

8th Jul '24

My biggest concern is local councils rejecting wind farm locations, or protests due to their "ugly and noisy" appearance. So it may be a long game like 2-5 years.

af20001

8th Jul '24

I don't know where this misperception of wind turbines being noisy has come from.

A typical large scale wind turbine produces no more noise than average ambient household noise.

N0vice1Nvest0r

8th Jul '24

I live rurally. I'm all for wind turbines that run efficiently and are well maintained. However, as I live rurally I am well aware of the protests from people basically saying yes, but not in my back yard. Meaning they think they're great, but don't want them locally to them.

Councils/protesters can come up with a range of reasons against wind farms. one of the old ones used to be noise.

john2

8th Jul '24

Well the ones near me are definitely noisy.

Blissgull

9th Jul '24

The best reason to object to wind farms that I ever heard was from a viewer in the BBC's "Working Lunch" programme about 25 years ago. The viewer wrote in to point out that:

"We don't need more wind farms. Britain is windy enough already."

N0vice1Nvest0r

9th Jul '24

oh.... lol

rmillaree

9th Jul '24

"We don't need more wind farms. Britain is windy enough already."

ahhhh but as wind farms turn they sap energy from the wind and in theory that should help reduce windyness.

interesting stat from random website - i know not how true it may be - and perhaps there would be no winds turbines standing if a storm like that came passing through -oh and 78k turbines in ridiculousaly high number.

according to the scientists, a wind farm with 78,000 turbines would have reduced the wind speed of the devastating hurricane Katrina by a good 140 kilometres per hour and its wave height by up to 79 percent.

Rusty2

9th Jul '24

The previous Govt. was already building loads of windfarms out at sea.

Tripling our capacity, is too much, what will happen to all the excess power on windy days? Unless it can be stored by batteries.

There are a couple of wind turbines near me, nearby residents were complaining about noise.

Why are new houses not required to have solar panels unless unsuitable?

How will the Govt. recovery the lost tax on fuel duty? As we switch to EVs.

I suppose there will be a windfall tax.

Logical David

9th Jul '24

Hi Rusty, the reason why some new houses have solar panels installed from new and other new houses don't have solar panels installed when built from new is all down to when the builder got planning permission. If the builder got planning permission prior to 2018 (I believe from memory) then regardless of when the houses are built they don't have to install solar panels on the new house. However, if the builder got planning permission after 2018 then they have to install solar panels on the new houses as standard. Hence, if a builder got planning permission back in 2017 to build a new housing estate but the builder didn't start building the houses until 2024 then the house builder isn't under any obligation to install solar panels .

It's not a case of NIMBYs or as the Amercians call them: BANANAs (Build Anywhere but Not Around the Neighbouring Area), its down to when planning permission was obtained.

On the topic of wind turbines, one of the conditions to installing a wind turbine is that the shadow from the rotating blades is not allowed to land on a window because the flickering light can cause epilepsy in some people.

David.

bullhead

9th Jul '24

Big risk will be political with the establishment of labours new pet project of great British energy which as pointed out below will lead to the over production of power from wind at times

Which unless there is some large scale way of storing the energy which in the short term there isn’t will mean that private companies will not be able to sell their electricity

In my view it will be best to wait and see how it all pans out I could be wrong but think great British energy will be like your local council running the electricity grid

When it comes to planning one of the considerations will be impact on birds and bats

https://www.bats.org.uk/about-....

https://ecosa.co.uk/site-news/...

Alphaflight

9th Jul '24

Hi bullhead,

Materials requirements per terawatt-hour (TWh) of electricity produced for wind:

‣ 8,000 tons/TWh of concrete
‣ 1,800 tons/TWh of steel
‣ 92 tons/TWh of glass
‣ 23 tons/TWh of copper
‣ 35 tons/TWh of aluminum
‣ 190 tons/TWh of plastic

All of these materials depend on oil, natural gas and coal. I'd say more here but I don't want this conversation to be abruptly killed off like the other conversation from earlier today...

Source

bullhead

10th Jul '24

Hi Alphaflight

Thanks for that info

As always you are one of the adults in the room some people think emotionally rather than logically and don’t look at the practicalities of something and what are the costs

Alphaflight

10th Jul '24

Thanks Bullhead. Yes I agree.

donald pond

10th Jul '24

There is no money to be made from wind power in the absence of subsidies. That's why nobody bid for the right to build them last time.

If you think we need more wind power, I would argue that it is exactly the sort of project that should be state funded, as it involves a lot of upfront capital and then produces energy at a very low marginal cost. Private capital will only fund that if the energy is priced high enough to generate a reasonable profit over the life of the project, which is fraught with difficulty, and ties the government into likely buying overpriced energy for decades.

If you want to understand why this sector is so tricky, you could do worse than start with this: https://www.argonautcapital.co...

But the upshot is that we (the UK) already pay large sums to wind farms to turn their turbines off. Building more seems absurd, but it is a case where the subsidies and signalling matter more than the reality.

Alphaflight

10th Jul '24

Dr Gail Tverberg correctly describes these as fossil fuel “extenders.” (link below).

Scientifically illiterate politicians are pushing an agenda that is destined to fail catastrophically.

I would argue that this offers convexity from an investment standpoint in the sense that "the market" is mispricing the future i.e. we will in fact need more oil, gas and coal, net zero isn't going to happen any time soon.

Ten Things that Change without Fossil Fuels by Dr Gail Tverberg

Charles Mitchell

10th Jul '24

Why cannot UKW borrow money ? Not sure the discount to NAV has anything to do with it- unless they have bank covenants in place ?

Charles Mitchell

10th Jul '24

Potentially battery storage funds should benefit-Gore Street Energy Storage Fund (LON:GSF) ,Gresham House Energy Storage Fund (LON:GRID) and Harmony Energy Income Trust (LON:HEIT) . But a sector that has been hard hit by pricing in the UK. GSF is my choice as has a diversified portfolio across five grids - Great Britain, Ireland, Germany, Texas & California. They get higher prices for the non-uk assets.

Don`t let the tail wag the dog

10th Jul '24

Sorry I used the wrong words. UKW can borrow money, though this isnt as cheap as it was a few years ago, so not sure whether its economically viable or not. But what I should have said is UKW would struggle to get an equity raise through a placing of shares on the market due to the 14% discount to NAV.

Charles Mitchell

10th Jul '24

OK that I do understand. They would be unable to have a rights issue for sure whilst discount is in place.

HHR

11th Jul '24

Ming Yang Smart Energy (LON:MYSE) is a Chinese company focussed on renewables.

I thought it was surprising they would list in London and I wondered if they might be angling for some UK contracts. The shares are thinly traded and have not done well for stags.

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Wind farm stocks due to Labour lifting ban on on-shore wind farms

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N0vice1Nvest0r

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