Renewable Energy

Vestas is one blade short of a full turbine

18 Aug 2016

After a much better second quarter, the resurrected Danish wind turbine maker has increased its operating profit forecast for 2016. Successful cost cuts and rising demand for green power create strong tailwinds. It’s time for the $16 bln group to ditch a parsimonious dividend policy.

Water deal pipes in refreshing M&A taste

15 Aug 2016

Xylem's $1.7 bln purchase of Sensus will end the metering specialist's tenure as one of private equity's longest-held investments. Unlike in some mergers, there's no scarcity of logic. The match fits cleanly with Xylem boss Patrick Decker's stated goals and the price looks right.

Tesla makes best of perplexing SolarCity deal

1 Aug 2016

At $2.6 bln, Elon Musk's electric-car pioneer is paying less than expected for his solar-panel installer. The boards have done the right things to manage conflicts. There's overlap between Tesla's battery unit and SolarCity. But diluting the ambitious automaker's focus is risky.

Hawaiian deal wipes out on isolationist wave

18 Jul 2016

Aloha State regulators blocked NextEra's $4.3 bln acquisition of Hawaiian Electric. A sale to the Florida operator was a neat way to end the utility's odd ownership of a bank and spur investment in solar. Britain isn't the only isle whose protectionist tendencies will be painful.

SolarCity governance torched by bid mini-committee

28 Jun 2016

The clean-energy company could find only two directors independent enough to assess Tesla’s $2.8 bln takeover offer. And one of them is a venture capitalist whose firm has backed Elon Musk’s companies. This lack of proper board engineering shortchanges SolarCity shareholders.

Siemens’ M&A timing needs a spot of fine-tuning

20 Jun 2016

The German group overpaid for U.S. oil kit maker Dresser-Rand just before the oil price collapsed. Now it is to fork out $1.1 bln to team up with wind turbine rival Gamesa, whose shares have rallied in recent years. Had it got its timing better, Siemens could have saved $3 bln.

Climate is in firing line from Britain’s EU vote

20 Jun 2016

A UK exit from the EU could weaken the fight against global warming. Brussels would lose a key voice for climate action, and coal-loving Poland’s influence would rise. A smaller EU - and go it alone Britain - would also find it harder to sway big polluters like China and the US.

VW reform firing on only two and a half cylinders

16 Jun 2016

The stricken carmaker’s new strategy cuts costs and embraces disruptive technology. But properly addressing the flaws that led to Volkswagen’s emissions scandal requires less corporate complexity, and better governance. Boss Matthias Mueller needs to do more on these last two.

EU emissions rules yet to hit U.S.-style top gear

15 Jun 2016

Brussels is tightening standards on cars’ CO2 output. It’s the second time European authorities have redrawn industry standards since the VW scandal broke. But to decisively bin its image as a relative soft touch, EU rules on “defeat devices” need to match those of the U.S.

DONG and E.ON mark green power’s coming of age

9 Jun 2016

The Danish wind park pioneer’s successful $16 bln IPO and broad shareholder support for the German utility’s retreat from fossil power show investors finally take renewables seriously. They have every reason to do so: climate change goals call for a vast rise in investment.

Negative rates turn up in useful spot: electricity

18 Apr 2016

Rising production of green energy combined with stagnant demand and the high cost of shutting down conventional plants is causing some producers to pay buyers to take power. Unlike the controversial central bank policy, this variety of negative rates has more clear-cut benefits.

Tesla investors race to on-ramp of disappointment

1 Apr 2016

Founder Elon Musk unveiled the mass-market Model 3 to much fanfare and some 140,000 advance orders. The $32 bln electric-car maker probably will need more cash soon. And it faces growing competition from the likes of GM and Nissan. Tesla stock, though, is priced for nirvana.

Guest view: Time to harness power of green trade

30 Mar 2016

Progress is being made on financing cleaner technologies, but many nations charge high tariffs on water purifiers and such. Upcoming WTO talks could help push to make environmentally friendly products more affordable, argues former U.S. Treasury Secretary Henry Paulson.

Wall Street sees ray of hope in SunEdison woes

3 Mar 2016

The likes of Citi and Goldman have soured on backing the troubled energy company’s purchase of Vivint, and they may have found a way out: the buyer’s failure to deliver current financials. It’s a breach of contract and a chance for the banks to avoid losses and maybe boost fees.

Billionaires add thrust to clean-energy moon shot

30 Nov 2015

Bill Gates, Mark Zuckerberg, Jeff Bezos and Jack Ma are among those pledging to pool their lucre for big investments in climate-friendly R&D. The aim is worthy but such ambitious projects have a mixed record. At least these entrepreneurs know how to tolerate serious cash burn.

Climate will supplant shale as top energy disruptor

27 Nov 2015

The world’s politicians may be about to get serious on cutting greenhouse gases at the U.N. Paris confab. And shareholders are pushing Big Oil to disclose global warming risks. The consequences for the industry will be longer lasting than the recent oil production revolution.

Islands sale emblematic of California water woes

11 Nov 2015

Zurich Insurance is set to sell land in the state’s northern water hub to a utility in the dry south. It may form part of a broader $15 bln plan and raises concerns about water rights, the environment, big projects and how to finance them and how best to use a scarce resource.

China carbon vow shows change in political climate

29 Jul 2015

Beijing’s new emission goal is convincing and could be legally binding. It’s a change of heart for a country that frustrated climate talks in the past. The commitment to change is real – even if a recent stock rout underscores how vulnerable reform is to domestic stresses.

Elon Musk plugs Tesla valuation into the grid

1 May 2015

The Silicon Valley billionaire’s new home battery system is, like his electric cars, too pricey for many. But if costs keep falling, Tesla’s Gigafactory runs smoothly and the solar market expands, shareholders may find there’s more spark in batteries than vehicles.

Global water woes mix with trickle of good news

23 Mar 2015

The planet faces a 40 pct H2O deficit by 2030 as rising populations require more food and energy. Droughts in Sao Paulo and California may become harbingers of doom. But progress on everything from data to usage to business awareness to international agreements offers some hope.