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Farrell: Play Wind Power Growth With GE

The United States will soon be the world's largest wind market. Here's a way to play this burgeoning industry.
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Editor's note: This was originally published on RealMoney on June 18, 2008. It's being republished as a bonus for TheStreet.com readers.

I've been so consumed by the price of oil that I decided I needed a break, so I want to talk (or is it write?) about wind power. Today's Financial Times had a superb article stating that the U.S. will soon overtake Germany as the world's biggest wind market. Wind supplies only 1% of U.S. electricity, but the Department of Energy figures this will rise to 20% in 20 years or so, even if electricity demand grows by almost 39%, which is what the U.S. Energy Information Agency has estimated.

Unsubsidized wind energy costs .08-.10 a kilowatt hour. Solar is more like .30, and fossil fuels range from .05-.10. The big deal to me with $135-per-barrel oil is that the fuel cost for wind is zero, and will stay zero. General Electric (GE), a stock I favor, is the largest wind-turbine manufacturer.

TheStreet.com TV: New Wind-Energy ETF Blows Into Town

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High oil prices have investors turning to wind-energy stocks. Robert Carey, chief investment officer at First Trust, says the new exchange-traded fund -- ticker FAN -- is the safest way to play the emerging sector.

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