Energy Sector Commodities: Wind Energy Investments
Wind energy is another renewable resource that’s getting increasing attention from commodities investors. Energy is generated by huge wind machines (similar to traditional windmills), which are placed side by side in wind farms.
The challenge to wind energy is that it’s dependant on the wind, a very unpredictable natural phenomenon. Wind has traditionally held a small part in the energy generation spectrum, but it’s increasing as it becomes a cost-effective solution. Currently, few publicly traded companies deal specifically in wind power.
That said, many industrial companies are beginning to implement large-scale investments in wind energy production. If you’re looking for some indirect exposure to wind, you can always consider an investment in General Electric (NYSE: GE). Although GE is known for its large industrial footprint, it’s becoming one of the leaders in the wind space and is the global leader in manufacturing and sales of wind turbines across dozens of markets.
With rising energy prices, wind energy may get more focus. If you’re interested in investing in wind power and want to stay on top of emerging trends, check out the American Wind Energy Association. The site maintains a database of private companies involved in wind energy that may go public one day.