Global Wind Power Market Growing at 25 Percent Annual Rate

The good news in the recent Siemens AG announcement that the sprawling, 165-year-old global company was abandoning the solar business was that it was sticking with its wind power business, at least for the time being. Siemens CEO Peter Loscher, who came to Siemens in 2007 and has spent much of his time revamping the entire business, is scheduled to unveil his new strategy on November 8 and wind power (as well as hydro power) is expected to be part of his plans.

The wind power market has been growing steadily at about a 25 percent compound annual growth rate for the past five

Photo courtesy of Howstuffworks.com

years, according to a market research report by Transparency Market Research (http://www.transparencymarketresearch.com/wind-energy-wind-turbine-market.html). In recent history Europe has been the leading market, followed by Asia-Pacific and North America, but China is gaining ground quickly and is expected to soon be the leader, according to the report. About 95 percent of all wind power is generated onshore, with offshore wind power installations still at a “nascent stage,” the report notes.

We’ve covered a variety of wind power and wind turbine small caps in recent months. Most of them are very small, even development stage.

Newbury Park, CA-based Sauer Energy (OTC: SENY, http://www.sauerenergy.com/) is a development stage company developing vertical axis wind turbines for commercial and residential uses. Formerly BCO Hydrocarbon Ltd., the company disposed of its oil and gas interests and in July 2010 purchased Sauer Energy and in May 2012 purchased Helix Wind Corp. When we last checked in late August SENY was trading at $0.26 with a 52-week trading range o $0.10-$0.95. It was trading at $0.25 at the opening of the market Oct. 31.

China-based China Ming Yang Wind Power Group (NYSE: MY, http://www.mywind.com.cn/) is a wind turbine manufacturer focused on designing, manufacturing, selling and servicing megawatt-class wind turbines. In July, MY announced it was considering a joint venture with China-based Huaneng Renewables Corp. to develop wind power and solar power projects in China and overseas markets. MY closed Aug. 27 at $1.21 with a market cap of $147.5 million. It opened for trading on Oct. 31 at $1.32 with a market cap of $165 million.

Chatsworth, CA-based Capstone Turbine Co. (Nasdaq: CPST, http://www.capstoneturbine.com/) develops and markets microturbine technologies, including technologies used to provide on-site power generation for wind power. On Aug. 23, CPST shares crossed their 50-day moving average and closed the day at $1.05 with 2.8 million shares sold. Back on Aug. 27, CPST closed trading at $1.01. It opened the market Oct. 31 at $0.96 with a market cap of $288 million.

Naperville, IL-based Broadwind Energy (Nasdaq: BWEN, http://www.bwen.com/) announced Aug. 23 that it was reducing its manufacturing footprint and shifting its “capacity and marketing focus to non-wind sectors.”  BWEN closed Aug. 27 at $2. It opened Oct. 31 at $2.30 with a market cap of $32 million.

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