Profits Blowin' in the Wind

May 07, 2008



Click here to watch a video of Toby's rant. Or click here to listen.

As we learned in the '60s, "The answer, my friend, is blowin' in the wind."

I'm talking about wind power, boys and girls.

Most people don't understand the true potential of wind energy. They still think of tax shelter windmills like those near Palm Springs, Calif.

Well, campers, let me bring you up to date. Wind energy is absolutely exploding, largely thanks to demand for clean renewable energy in Asia, particularly China, which is leading the humongous demand growth for wind power.

China just announced it's upping its targets for wind power to 120 gigawatts (GW) from 30 gigawatts. That's equal to the output of 100 nuclear power plants, and it represents more power-generation capacity than exists in all of France.

Think of it this way: The entire world had installed just 94 gigawatts of wind power at the end of last year. Germany -- by far the most wind-friendly country -- has about 20 GW. The United States, which is one of the fastest-growing wind-power markets, has 16 GW.

The Great Dam of China

How much energy is 120 gigawatts really?

It's the equivalent of the capacity of five new Three Gorges Dams -- the world's largest hydroelectric project, which is located in China.

Why the emphasis on wind power in China? Because there won't be five more Three Gorges Dams. As a matter of fact, there won't be one more.

This $30 billion project has proved that damming up tens of thousands of miles of fertile land to create a hydropower plant is insane (not to mention the pollution it can create).

The fact is, China needs as much power as it can get. Solar power is growing fast, but it's still in its infancy, and that leaves wind power.

Chasing the Wind

Once China finally gets its incentive program for renewable sources worked out and in full swing, watch out.

Chinese officials are rushing to jump-start the country's wind turbine manufacturing business because the global supply is tight, making them pricey. However, in the short term, more ambitious Chinese targets will create more pressure on the global wind turbine supply.

And the push for clean energy is not just coming from China.

In a unanimous vote last week, the Ohio legislature passed a new bill requiring that 12.5% of the state's energy be generated from renewable sources like wind and solar.

Ohio is the 26th state to adopt renewable energy portfolio standards following states like California, New York and Texas. These tough new laws are creating one of the most dramatic shifts in energy delivery in the United States.

A Profit Windfall

There are great opportunities for investors in wind power, with wind energy component plays topping the list.

We have one of the very best component plays on the ChangeWave Investing Buy List, and we plan to add more. (Get in now.)

Another great opportunity in this space is energy distribution infrastructure -- i.e., new ways of getting electricity from wind energy plants into the power grid and into your home. Here you want to own the key electric metering software company.

The bottom line: As is typically the case, when China decides it is going to do something, the rest of the world is affected.

When it comes to renewable energy, China is the 8,000-pound gorilla as it attempts to bring power to the 30 million new urban residents that pop up there each year. And when you factor in other emerging countries, we're talking about 50 million new urbanites a year -- people who want electricity, cars and all of the other staples of middle-class existence.

This is why wind power will be one of the fastest-growing ChangeWaves in the world for the next five to 10 years, and we can help you make money from it.



Toby

P.S. When we say wind power is going to be huge, we're not just tilting at windmills. There are some very real profits to be made in this space, and now is the time to get on board. Get a 90-day, risk-free trial subscription to ChangeWave Investing to begin your quest for giant profits.

---

Tobin Smith is the founder of ChangeWave Research, the editor of ChangeWave Investing and ChangeWave MicroCap Investor and a contributing market analyst for Fox News Channel. His market commentary can be found in the ChangeWave WaveWire and he provides more specific recommendations and advice through his ChangeWave Investing service. Click here to learn more about ChangeWave Investing.