Wind Power Ponzi Scheme Running Out of Puff

exitsigns

Got money in wind power? Then grab it and run like the wind, only faster …

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Who would have thought, hey? That a wholly weather dependent power generation ‘system’, actually depended upon …. the weather?

In the mother of all ironies, wind power outfits in the US – well, everywhere, really – are cursing the Wind Gods, as their puffed up promised profits plummet; and investors fume.

The wind industry is little more than the most recent and elaborate effort to fleece gullible investors, in a list that dates back to “corporate investment classics”, like the South-Sea Bubble and Dutch tulip mania. In the wind industry, the scam is all about pitching bogus projected returns (based on overblown wind “forecasts”) (see our posts here and here and here and here); claiming that wind turbines will run for 25 years, without the need for so much as an oil change (see our posts here and here and here); and telling investors that massive government mandated subsidy schemes will outlast religion (see our posts here and here and here).

In Britain, Wind Prospect Group has stopped paying dividends to its bond holders and has prevented them from cashing them in to recover their capital outlay:

Got Money in the Great Wind Power Ponzi Scheme? Then, Grab it & Get Out Now!

In Australia, one of the wind industry’s BIG players – Pacific Hydro – managed to rack up an annual loss of $700 million, last year; in circumstances where the subsidy scheme – on which its profits depend – hadn’t changed at all (see our post here).

Also in Australia, so-called ‘community wind farm’ operators have taken thousands for dupes, with wild claims about whopping profits to be had – all while ‘saving the planet’, of course:

Wind Power ‘Investors’ Cut & Run from Australia as Ponzi Scheme Implodes

Australia’s most notorious wind power outfit, Infigen just racked up a $304 million loss – blaming “particularly poor wind conditions“, as if the wind was as dependable as death and taxes. Its Optimist in Chief, Miles George telling ruin-economy that “wind conditions were expected to improve”. Which, as far as Infigen’s exceedingly nervous creditors and investors are concerned, is about as comforting as hearing that “the cheque’s in the mail”!

Now to the US, where the same run of breezy excuses are being pitched; with jumpy bankers, creditors and investors all getting ready to take a big, collective bath.

US clean energy suffers from lack of wind
Financial Times
Gregory Meyer
1 September 2015

A lack of wind is making the US clean energy sector sweat, with consequences for investors from yield-hungry pensioners to Goldman Sachs.

Electricity generated by US wind farms fell 6 per cent in the first half of the year even as the nation expanded wind generation capacity by 9 per cent, Energy Information Administration records show.

The reason was some of the softest air currents in 40 years, cutting power sales from wind farms to utilities. The feeble breezes come as the White House is promoting renewable energy, including wind, as part of its Clean Power Plan to counter greenhouse gas emissions.

“We never anticipated a drop-off in the wind resource as we have witnessed over the past six months,” David Crane, chief executive of power producer NRG Energy, told analysts last month.

The situation is likely to intensify into the first quarter of 2016 as the El Niño weather phenomenon holds back wind speeds around much of the US, according to Vaisala, a Helsinki-based weather measurement company.

“We do know that the strong El Niño cycle that we are now in tends to be correlated with below-average continental wind resource, and we also know that meteorological expectations are for the El Niño phase to continue,” Moray Dewhurst, chief financial officer of NextEra Energy, said on a recent conference call.

US wind farms are increasingly owned by so-called yieldcos, spinoffs from power producers that promise steady payments based on contracted electricity sales. Shares of wind-exposed yieldcos such as NextEra Energy Partners, Pattern Energy Group and NRG Yield, controlled by NRG Energy, have declined this year. NRG Yield reduced its earnings forecast due to what it called “unusually low wind production across the fleet”.

Wall Street banks are passive investors in wind farms, often through tax-advantaged financing structures. Goldman Sachs’s holdings include a stake in Cabazon Wind Partners in California, where generation fell 16 per cent in the first half, EIA data show. JPMorgan Chase recently acquired an interest in California’s Alta Wind X facility, which suffered an 18 per cent decline in electricity output.

Standard and Poor’s put a negative outlook on bonds issued by two wind farm companies as their revenues tracked wind speeds lower.

“Although our current expectation is that the wind resource will revert back to historical averages, at this time it is unclear when that will happen,” the rating agency said.

Wind generated 4.4 per cent of US electricity last year, up from 0.4 per cent a decade earlier. But this year US wind plants’ “capacity factor” has averaged just a third of their total generating capacity, down from 38 per cent in 2014. EIA noted that slightly slower wind speeds can reduce output by a disproportionately large amount.

Investors and analysts said the lighter wind compels renewable energy investors to own wind farms and solar plants in diverse places.

Pascal Storck, Vaisala’s global manager of energy services, said: “You don’t want to have all your eggs in one basket. You don’t want to be all in Texas and not have some mitigation strategy for when wind speeds are below average.”
Financial Times

Aeolus1

The Wind Gods: as fickle as ever …

About stopthesethings

We are a group of citizens concerned about the rapid spread of industrial wind power generation installations across Australia.

Comments

  1. Jackie Rovenksy says:

    Capacity wind ‘produced’ energy is based on the capacity of turbines to operate 24/7 for the whole of their lifespan – what ever that refers to. Unfortunately that is not possible and anyone who believed the promotional diatribe from the industry and its twits are people incapable of rational thought.

    Earth would certainly be a very difficult place to live on and survive in a manner which we have come to understand – if gale force winds with no fluctuations in strength and/or intensity were to become the 24/7 norm.

    Modelling of wind conditions is obviously not possible over a period of a year let alone many years. Wind is a natural force that cannot be controlled to suit anyone’s needs. Wind test masts are all but useless to assess a site as suitable for these horrific intrusions.

    It is being shown time and time again that these things cannot provide what they are stated they can provide. Any investment in them is nothing more than investors gambling on how much they can ‘earn’ before Governments stop the financial support of an industry that CANNOT EVER be truly considered viable.

    Its time our Government took the bull by the horns or the turbine by the blade and switched this industry off life support.
    There are better ways to spend our money where everyone will benefit, not just the gamblers.

  2. Jim Wiegand - Wildlife Biologist says:

    “We never anticipated a drop-off in the wind resource as we have witnessed over the past six months,” David Crane, chief executive of power producer NRG Energy, told analysts last month. Here is another side of the lack of wind story………… This industry’s reported energy outputs have not been true and there has never been enough wind to account for this industry’s reported production. I started reporting about this a year ago.

    Accountability has always been missing from this industry and the public is has no idea how little “net” energy these spinning eagle killers really produce for the grid. In America wind Power has never produced energy like the US Energy Information Administration has reported. The published energy production numbers for wind are embellished and can not possibly substantiated for this unregulated, voluntary and self-reporting industry. Especially since energy going into wind farms is not accounted for when reporting wind energy production for tax credits.

    Energy flowing into wind farms means more energy is flowing out that produces industry income. Wind turbines don’t even have to be turning and there could be wind energy production being reported. Another reason wind energy production is embellished is that it is being sold to utilities as part of unverifiable energy mix of energy from other sources.

    Keeping track of the so called “green energy purchased, green energy contracts traded among friends, and applying predetermined averages to output totals is not the same as having to actually account for the green energy being produced.

    This arrangement has all been set up for profits. An arrangement that is very similar to the voluntary self reporting and rigged mortality research being used to conceal the fatalities millions of birds and bats annually. A slaughter that also includes endangered species.

    Since 2005 the wind energy production numbers given out by the EIA have risen by 30-35% per installed capacity for the US. I see industry rigging and not a lack of wind or turbine efficiency as the primary the reason for these increased numbers. I even have a document showing Enron wind (one of the founders of today’s corrupt wind industry) receiving energy credits that would amount to an impossible 72% capacity factor for their turbines when other turbines in the region were only producing energy in the 20- 25% range.

    The bottom line with wind energy is this………The wind industry is being operated by people of such poor character, that without accountability they just can’t help themselves from stealing your tax dollars.

  3. I love you guys, STT! Weather driven scams like wind power, and pv solar, can’t work and don’t work. They produce toy power, very expensive toy power, for wealthy investors to become even wealthier, while the rest of us are pauperized, and even chastised for trying to use electricity to heat our water and heat our homes. The chief spruikers have learned all the tricks of the community organizers and know how to lull the voters to sleep in order to get their wind power favorable legislation passed. It will take even more effort to awaken the sleeping majorities to the devastating danger they face from the “climate catastrophe” ruse.

  4. My story is as good as the windweasel’s story. Maybe these things are stopping the wind, hey maybe. That is one for the tobacco guru to read & review, ha, ha.

  5. Martin Hayles says:

    I tend to have a little chuckle when Miles George pops up his head and enlightens us with his all-so-reasonable statements.

    “Wind conditions were expected to improve” Well he would say that, wouldn’t he? Is Myles attempting to explain an event in the past that never happened?
    I can’t wait for his prognostications with regard to his windmills. Keep your chin-up Miles, things can only get better……probably.

    As for Moray Dewhurst of Next-Terror Energy and her “below average continental wind resource”, I assume she means that which Miles tried to explain as the phenomenen that should have been improving but didn’t.

    Can you imagine these idiots attempting to explain anything to their children.

  6. Terry Conn says:

    What the wind industry desperately needs is ‘catastrophic climate change’ that includes non variable high winds evenly spread over the entire planet blowing west to east!!! Good luck with that chaps.

  7. No Bagot Well/St Kitts wind farm says:

    Congratulations STT!

    Over 1 million hits + over 24000 followers and still going strong.

    No doubt about it “There’s something happening here”.

    Thanks for enabling the truth to come out.

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