Author Topic: Wind energy  (Read 1774 times)

longinvestor

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  • Never interrupt compounding unnecessarily -Munger
Wind energy
« on: June 07, 2009, 09:50:38 PM »
One of the most interesting growth stories in the annual report is on wind. Midamerican is going into wind in a big way. 30% of total energy generated  in Iowa and poised to do similar with Pacificorp. Warren has been saying for years now that MidAM is going to get bigger thru acquisitions. And then there is the rumor about Sokol getting the BRK reins. Also then there is the British arm of MidAm. Many parts of EU has been with wind for about 2 decades. Germany for instance is working towards replacing nuclear with wind by 2030.


How much does MidAM contribute to the intrinsic value of BRK? Any thoughts?

Btw i think Munger is all over this one. A couple of years back he thought Corn-Ethanol was a stupid idea because it takes more energy IN versus OUT with Ethanol. He has probably written out the money making equation for wind on the back of an envelope.

The idea of "free" insurance float is probably a great analogy to wind energy. Just sit there making money.


prevalou

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Re: Wind energy
« Reply #1 on: June 07, 2009, 11:27:58 PM »
could wind be a source of energy if there were no subsidies?
At what oil price is it economical ?

StubbleJumper

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Re: Wind energy
« Reply #2 on: June 08, 2009, 05:59:21 AM »
I seem to recall that T. Boone Pickens made some declaration about moving into wind in a big way.  I also wonder whether this would be economic in the absence of significant government/consumer subsidies.  Or is it that places like Texas, Nebraska and Iowa are just great places to generate wind power and that consumer demand during the daytime is sufficient to absorb the extra power?

Neither MidAmerican nor T. Boone Pickens are fools, so....