GE AIMS FOR $6 BILLION IN NEW ENERGY

Here’s the question: What does GE know that Big Oil and Big Coal don’t want to know?

The answer begins with the fact that GE’s wind farm purchase from Horizon puts them in business with Iberian energy giant EDP (which owns Horizon and will continue to build and operate the wind farms). It ends with the observation that the next level of consolidation in the wind energy business is now being played out all over the world with the biggest utilities moving from contractors for wind resources to owners of wind resources.

Kevin Walsh, Managing Director, GE Financial Services: “This project attests to the growing appeal of the US wind market among European utilities, and helps us diversify our wind holdings in the United States.”

The big get bigger. (click to enlarge)

GE Unit Boost 2010 Renewable Energy Invest Target to $6 Billion
Nicholas Hatcher, January 14, 2008 (Dow Jones Newswire via CNNMoney)
and
GE Unit Boosts 2010 Renewqable Energy Investing Target To $6 Billion, Announces Its Largest Wind Deal
Andy Katell, January 14, (GE Energy Financial Services)

WHO
GE Energy Financial Services, a unit of General Electric Co.; Horizon Wind Energy LLC; EDP

EDP is an Iberian mega-utility that wants into the U.S. wind energy market. (click to enlarge)

WHAT
GE upped its New Energy investment target from $4 billion to $6 billion and announced the purchase of 4 wind farms from Horizon Wind Energy LLC.

WHEN
- The target is for 2010.
- Current New Energy investment is at $3 billion.
- 3 of the 4 wind farms will be operational by the end of January 2008. The 4th will be operational by mid-2008.

GE's new wind farms. (click to enlarge)

WHERE
- GE is based in Atlanta.
- Horizon is based in Houston.
- The 4 wind farms: (1) Elkhorn Valley – Union County, Oregon, 101 megawatts; (2) High Prairie II – Mower County, Minnesota, 101 megawatts; (3) Lone Star II – Shackleford County, Texas, 200 megawatts; (4) Twin Groves II – McLean County, Illinois, 198 megawatts.

WHY
- The wind farm purchase totaled $300 million for 600 megawatts of wind energy capacity.
- GE expects New Energy to be 20% to 25% of its total energy/water portfolio by 2010. It was 10% in 2006.
- A Wachovia Corp. subsidiary is participating in the wind farm purchase.
The wind farms will be built and operated by Portuguese/Spanish energy powerhouse EDP.

GE is moving in solar energy, too. (click to enlarge)

QUOTES
Alex Urquhart, President/CEO, GE Energy: “Thanks to our strong customer relationships, our expertise, GE’s technical capabilities, high fossil fuel prices and popular support for cleaner power, renewable energy has become our fastest-growing business…With our broad capabilities to invest equity and debt within and outside the United States – not only in wind but in solar, biomass, hydro and geothermal power – we have become a major player in a $60 billion annual renewable energy market.”