(Continued from page 1)

    GE initially entered the wind power industry in May 2002 when it acquired assets of Enron Wind Corp. At the outset of the acquisition Steve Zwolinski, president of GE Wind Energy stated, "The wind power industry offers tremendous opportunities for growth and continued technology development. There are synergies from several GE businesses, in areas such as plastics, transportation gearing applications and power controls that can be applied to wind turbine technology. Our Six Sigma quality procedures can drive further improvements in wind turbine generators. And our global sales force can deliver the latest wind power technologies to regions throughout the world."

    GE has followed up on this statement and quickly moved to many locations over the globe to deliver wind turbine generators, power plant design, engineering, site selection, and plant operation and maintenance services. GE’s acquisition of advanced technology in the Enron deal played a key role in the development of large turbines for on and offshore applications. According to a GE press release, the development of larger and more efficient wind power systems was making the technology a more cost-competitive power generation option. This statement has thus far proved to be true, and not by any casual guess on the part of GE. The wind power generation industry was studied for no less than three years before GE jumped in when Enron began shedding assets.

   About a year after the Enron acquisition and implementation of their wind energy division into the marketplace, GE was reporting that they expected the operation to generate more than $1 billion in revenue during 2003 and grow by approximately 20% each year. Evidence that GE was aware that the change to wind energy systems development and other renewable power generation R & D is crucial to their bottom line lies within other moves being made within their Power Systems Division. This division makes traditional gas turbines for power plants. GE laid off hundreds at their gas turbine factories over the course of 2003. At the same time GE was ramping up efforts within its new wind division. This proved to be a good move, as GE reported the following at Global Windpower 2004. GE Energy’s activities in the global wind industry produced more than $1.2 billion in revenues for 2003, a 150% increase above the previous year’s total.

   Underscoring the growth of the wind energy industry and GE’s commitment to renewables, during its first 22 months in wind energy, GE had more than doubled its wind engineering workforce, quadrupled its R&D engineering support to the wind segment, and initiated over 100 new wind energy technology projects. GE also dedicated an existing GE facility in Florida to wind turbine blade manufacturing and announced the 2004 opening of a new Global Research Center in Europe with an added focus on renewables.

    GE’s major announcements over the course of 2003 included a February '03 release stating that it will supply 80 wind turbines for the first wind project of the Los Angeles Department of Water and Power, the nation's largest municipally owned utility. In April '03 GE announced that it supplied 10 wind turbines for one of the largest wind farms in Japan, as well as 20 wind turbines for the largest operating wind farm in New York, located in Fenner. (pictured right).

    Next, GE sold 25 wind turbines for phase I of 400 megawatt Sweetwater Texas Wind Project in July ‘03. The Sweetwater Wind Project will be among world’s largest wind electricity developments when completed. “Sweetwater 1” is expected to generate enough clean, renewable energy to supply the annual electricity needs of more than 11,000 average Texas households. At time of sale, GE’s 1.5-MW machines were among the world’s most widely utilized wind turbines in their size class. At the time of this writing over 1,500 of these machines have been installed and are in operation in Germany, Spain, the Netherlands, Ireland, Belgium, Japan, Sweden and the U.S.

(continued top of next column...)

    

        At the announcement of the Sweetwater deal GE’s Zwolinski stated “Texas’ exemplary leadership in bringing new renewable energy generation to its consumers is encouraging to other states who are adopting or considering similar renewable energy goals. GE is pleased to be a part of this industry.”

The Wind War
    Recent news centers on a proposed wind energy project located off the coast of Cape Cod where GE is contracted to supply 130 turbines for the Cape Wind Association (CWA). The project would be the first offshore wind farm in the United States and could provide enough clean electricity to meet about three-quarters of the annual requirements of the cape and nearby islands, GE said. But that is if the wind farm will be constructed in the first place. The site’s proponents are fighting a citizen’s group opposed to the plant's construction for various reasons.

    Depending on their size and location, wind farms can be controversial. Opponents of the project off Cape Cod said the 420-foot towers would be an eyesore and would interfere with navigation and the environment. The group “Save Our Sound” is actively campaigning against the Cape project. The group has published a web site to present them and garner support for their cause.

  Major reasons for opposition include the costs involved with implementing the new plant and a claim that instead of lowering costs, the project would cost an additional $35 million per year when compared with clean gas technology. They also refute claims that moves toward renewable energy sources would give the U.S. greater energy independence & reduced reliance on Middle East oil citing that nearly 70 percent of our oil is used for transportation and only 14 percent of our oil comes from the Persian Gulf.

Save Our Sound is also voicing concern over harmful effects on fishing grounds, boating safety, bird and marine life, and tourism. They have also stated that the particular offshore wind plant being proposed is untested and do not wish for public money and land to be used for corporate R & D. The proposed project would utilize turbines which have, at this point, not been used extensively in an offshore environment.

    “Save Our Sound” has gotten the support of area boating and fishing groups, the local newspapers the Cape Cod Chamber of Commerce and a coalition of National and International environmental groups who oppose the location of this project.

The Hot Wind
    There have been claims that GE is using this foray into wind energy to offset attention from negative environmental issues which have affected the company’s public image several times throughout its long history. Most notable is the Hudson River PCB pollution issue. The Sierra club has campaigned to get GE to take more proactive measures to clean the river.

    It appears, however, that even though the venture into the wind power industry will help GE’s environmental profile, that the moves GE is making are more about positioning the company to be a leader in this new and rapidly growing industry. Once again, although it seems a good move toward cleaner energy development that could benefit all, it is also a dollars and cents issue for the company. This, however, is one of the central tenets behind a new philosophy of “Natural Capitalism”. As Paul Hawken states in his book of the same title; “its advantages can also dispel the long-held belief that core business values and environmental responsibility are incompatible or at odds.”

Continued >>> Next Page >>>