America's largest corporations are
switching to "green" power in record numbers -- pushing an already hot
renewable energy industry into overdrive. In its latest quarterly rankings,
the Environmental Protection Agency (EPA) recognized Intel (Nasdaq: INTC),
PepsiCo (NYSE: PEP) and Wells Fargo (NYSE: WFC) as America's three leading
corporate purchasers of "green" power.
According to the EPA rankings, many companies making the switch to
renewable energy choose wind. Some, including Wells Fargo, sourced fully
100% of their corporate energy consumption, from wind. In total, the EPA
estimates America's largest corporations now purchase 5 billion KWh of
renewable energy -- exceeding the EPA's goal by 30%.
The impact on the wind energy industry has been dramatic. Last week,
the American Wind Energy Association (AWEA) reported total wind power
generating capacity grew by a staggering 45% in a single calendar year.
U.S. wind energy companies spent $9 billion adding 5,244 MW of generation
to the nation's energy mix in 2007 -- enough power to supply 1.5 million
homes.
According to an online survey of Wall Street analysts, the companies
building new wind energy facilities -- particularly power producers and
utilities -- appear to be the beneficiaries of America's accelerating
demand for wind power.
Matrix Research has a "buy" on Duke Energy (NYSE: DUK) and Lehman
Brothers raised its target price on Xcel Energy (NYSE: XCEL). Both are
integrated utilities -- but also important renewable energy players with
wind a fast growing part of their generating capacity.
Investology Research has a "positive" buy recommendation on NACEL
Energy (OTC Bulletin Board: NCEN). NACEL Energy is one of the few "pure"
wind companies in the sector and earlier this month announced a major 80 MW
expansion.
A Before the Bell (TM) renewable energy update.
SOURCE Before the Bell
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