Danish turbine maker Vestas Wind Systems (PINK:VWSYF) is facing a challenge from General Electric (NYSE:GE) in the fight to dominate the world’s wind market. According to one report, the Fairfield-based company has already achieved this feat after Vestas lost its grip on a market it has controlled since 2001. Will it allow GE to take control of the world’s energy market for good?
Conflicting reports put GE either slightly ahead or just behind Vestas, which improved its market share by 1 percent in any estimation. GE’s innovations in the industry and solid brand have allowed it to gain steadily on the Danish company, culminating in a hotly contested fight for first place. With markets emerging in several regions of the world, the struggle for energy supremacy is worth considering.
GE followed the news with a press release on Thursday announcing it had produced the “world’s most efficient high-output wind turbine.” Working closely with a renewable energy institute based in Holland, GE celebrated a decade-long struggle to perfect the technology that could keep it ahead of Vestas in the near future. Vestas, reeling from the encroaching energy giant, refuses to confirm that GE has passed it in the wind-turbine game.
Investor confidence is likely to be tempered by the fact that GE’s shipment of turbines is on a slowing pace. Its 2013 output is expected to be 40 percent lower than its figures in 2012, representing an industry-wide slowdown. The cost of wind-powered energy has never been so low, yet other sources of renewable energy have given the industry a run for its business. Nonetheless, U.S. installation are increasing and surpassed China’s installation figures for 2012, which hasn’t happened in several years.
Siemens, number three in the world wind industry, kept its position, leaving Vestas and GE set for a fight throughout the remainder of the year. Analysts point to the availability of U.S. federal energy credits as reason for GE’s surge in recent times. While those tax breaks expired, investors can take solace in the continued tech advancements. GE’s position in the worldwide energy market doesn’t appear headed for a slowdown.
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