Apr 29 2008
In a unanimous vote, the Ohio legislature has passed a new bill requiring 12.5% of Ohio's energy be generated from renewable sources like wind and solar. Ohio now becomes the 26th state, including California, New York and Texas, to adopt renewable energy portfolio standards (RPS) -- tough new laws which are creating one of the most dramatic shifts in the delivery of energy to American consumers ever.
Dozens of planned coal, natural gas and diesel fired power plants have been cancelled across the country. Instead, 60-gigawatts of wind and solar power (enough energy to serve 20 million American homes) will be constructed, according to a new study by the Lawrence Berkeley National Laboratory.
Not surprisingly, wind and solar companies are enjoying record growth. Solar wafer maker ReneSola and photovoltaic company Yingli Green Energy both received upgrades from analysts at Piper Jaffray this month.
But as busy as the solar companies are wind is America's renewable energy of choice. Last year the wind industry installed an astonishing 5244-megawatts of new wind power outpacing solar's 254-megawatts by 20-1. The American Wind Energy Association estimates Ohio's new RPS law on its own will result in at least $10 billion of new wind energy project investments.
Analyst recommendations in the wind power sector include NACEL Energy. Regular CNBC guest analyst Francis Gaskins has a $4.00 target on NACEL Energy. The Wyoming based wind power company recently unveiled a major 80-megawatt expansion, including two new wind projects in Texas.
Analysts also continue to like NRG Energy a diversified power producer with a growing wind energy business. Lehman Bros is overweight NRG with a $55 target.
A Before the Bell(TM) renewable energy update.