North American

Wind Turbines And The Direction Of Renewable Energy

admin  Energy  ,

Wind turbines are popping up all over the world. It is not unusual to find single windmills or acres of wind turbines creating clean energy these days. This energy producing alternative is costly to install, but very effective in reducing the price of energy for consumers over time.

This type of natural power is clean energy, but what exactly does that mean? Wind turbines do not rely on fossil fuels or natural gas to produce energy and therefore do not deplete the earth of its natural resources. This power can be directly acquired from the country in which it is generated, cutting importing costs and further reducing prices for the consumer.

The economic growth of the industry also lies in the manufacture of the windmills themselves. The more in demand they are, the more economic and employment growth will develop. This growth not only depends on building the actual windmills, but also on manufacturing the batteries, capacitors, and cables which store and transmit the energy accumulated by these rotating giants.

It has been predicted that by the year 2030, many of these wind farms will be set offshore. The huge turbines would almost not be seen above water, but the power they would produce could be immense. This is a first of its kind innovation and is reported to be somewhat stalled in the bureaucratic phase for the time being.

Batteries will ensure that the turbines will continue to move even when the force of the wind is significantly reduced. By contrast, the East Coast wind farms will probably never suffer from a lack of power source. These farms will be highly productive and the predicted outlook is excellent for the immediate future and long-term future.

Huge offshore cables, called “spines”, are buried in shallow trenches under the sea to transport the collected energy to the mainland. Initial reports indicate that this development could possibly produce enough energy to sufficiently power the entire Eastern seaboard. The cable is being laid now, even before the windmills are planted.

The amount of energy created by these offshore farms is predicted to significantly reduce the load of the current energy grid in the Northeastern US. The cost of this project is said to be in the high multi-billion dollar range, which is causing some delay. There are other significant factors, however, which are also delaying the progress of this project.

Fishermen make their living off the North American eastern coast and studies are being conducted regarding the reconciliation of the two industries. Another problem being faced is the fact that there are sacred burial grounds submerged in the sea there, which should not be disturbed. A third hindrance is the assumption by special interests groups that this development will destroy the beautiful view off the East Coast, who are lobbying to stop the project.

Wind turbines are one of the safest and cleanest means of generating energy, providing economic growth and reducing the load on the current energy grid. Along with solar power and thermal heat, it is a viable and sustainable solution to our energy crisis. There is significant growth in the wind-turbine industry all around the globe. There are many online sites with information regarding the direction in which renewable energy efforts are headed for the immediate and long-range future.

Types Of Economic Moats To Help You Make Money

admin  Sales  , ,

There are many factors you should consider when choosing those best-of-breed businesses that have great growth potential and are capable of generating substantial profits for you over the years. So, how important is it that a company has a well-established economic moat? The short answer: crucial.

An economic moat refers to the notion that the business has some durable competitive advantage, not unlike a moat that protects a castle from attack. The wider the moat the easier it is to fend off attackers.

Finding a business with a wide moat is key to finding a successful business to own; the wider the moat, the more predictable its future 20 years down the road. Having a competitive edge, allows for a company to have a degree of predictability.

As an investor, you are looking for not only sustainable growth rates but also consistent growth in cash flow, equity and sales over a 5 to 7-year period of time. With increasing cash flow, profitability for both the business and you the shareholder arises.

With increasing cash flow, a best-of-breed business can whether the ups and downs of the economic business cycle paying off debt when needed or investing capital for expanding into new markets.

Wide moat companies are also protected from inflation since their monopolistic position enables them to raise prices at will.

Here are seven types of economic moats to look for in a potential business:

Brand a product or service youre willing to pay more for because you know and trust it. Companies like Disney and Nike have good brand moats.

Secret – a patent, copyright or trade secret that makes competition difficult or illegal. Examples of these companies are 3M, Pfizer and Apple.

Toll – having exclusive control of a market through government approval or licensing thus being able to charge a toll for accessing that product or service. Such businesses as PG & E, a utility company and Time Warner a media business fit the mold.

Switching – being too much trouble to switch to another provider due to the high monetary and time costs. Microsoft and H & R Block are two good examples.

Low Price – products priced so low no one can compete because they enjoy massive economies of scale due to a huge market share. Both Home Depot and Wal-Mart are examples of businesses that have used pricing to establish an economic advantage.

Network Effect – the ability to quickly dominate a network of end-users by being first in the market. EBay was the first online auction business to dominate the North American market.

Unique Corporate Culture – a way of doing business that would be difficult to duplicate in another business environment. Southwest Airlines benefited from this type of economic moat in the early years.

You need not find a company with multiple moats to consider it to be a potential investment candidate. It should have one moat that seems hardest to cross and one that is sustainable long-term. Once again, the establishment of a viable economic moat shows up in the fundamentals. Companies with consistently high growth rates of over 10% per year in sales, equity and free cash over many years are the ideal candidates.