Producing Wind turbines is a mediocre business at best. I looked at Vestas a while ago and didn’t see a reason to get exited.
Agreed - but everything in the wind farm business is mediocre.
Per public markets, the choices are either the utilities using them - or the turbine makers themselves. Different types of business.
Turbines pollute (noise, aesthetics, etc). Viable locations are limited, and damage suits are working through the system.
Hence utilities have a long tail risk, that must be included. Turbine makers not so much.
Turbines are two businesses. Once/done construction, and erection/decommission + repair/maintenance.
When the industry is growing the money's in construction, when its mature it's in servicing.
Break everything down into flat-packs, and ship by the thousands to extract economies of scale.
Asia (& therefore Asian manufacturers) has a material advantage.
Easier to override public objections, cleaner air/water quicker - by leapfrogging o/g and coal as a fuel source, and lots of sparsely populated windblown desert/plains to put them in. For every 1 'western' turbine, maybe 2-3 Asian turbines are being installed. And not just in Asia.
The problem is time to market development.
These are FUTURE cash flows - that must be discounted at a high rate to reflect the uncertainties.
Current NPV is negative to marginal - at best. Hence the industry subsidization.
You don't get rich, your kids do.
SD
So turbines are like giant metal trees that eat carbons. You plant them and get virtually no return, but your kids are glad you did just like you don't get to sit in the shade of the trees that you plant.