The European Union has taken the lead on many climate change issues - from ratifying the Kyoto Protocol to passing laws to require and encourage the development of renewable energy. Why, then, are so many European energy companies looking to invest in the United States? For António Mexia, the chief executive of Energías de Portugal, the answer is simple. "The United States is the fastest-growing market in the world for wind power," he said. "If we want to be a leader, we have to be here." ..."In America you can put up a 200- or 300-megawatt wind park," Mexia said. "You can't do that in Europe" because of the lack of open space for such large wind farms. There is also more potential for growth in the United States, where wind farms account for barely 1 percent of installed generating capacity. In some EU countries, that figure is as high as 10 percent.

The Norwegian fish industry fiercely fights goverment plans to build windmill parks at sea. The windmills will hinder fishing and shipping, a fish industry association argues. In its annual conference this weekend, the Norwegian Fishery Association unanimously supported a proposal to fight the development of windmill parks at sea.

...more than 100 reporters swarmed to the exchange for a lunch hosted by Iberdrola's chairman, Ignacio Galan, to present the company's strategic plan for the next three years and its quarterly results - the first following the acquisition of Scottish Power earlier in the year. ...During his presentation, Galan noted that because the interest in renewable energy has taken off, demand for turbines is outstripping supply. He said that the link with Gamesa will help ensure Iberdrola has access to the turbines it needs and wants. Gamesa represents 63% of the supply contracts Iberdrola has. ...Moulder at CreditSights said that his concern is that "senior management at Iberdrola do not understand the regulatory regime in the UK. There are certainly managers within the UK who will be experts on regulation, but we get the impression that Spanish managers believe they can lobby politicians to change regulation in other countries (rather like they do in Spain) and if they try this in the US or in the UK they will be in for a shock." Wolfden at Uswitch also has reservations and said the integration between the two companies is still very much "ongoing".He questioned whether the Spaniards have "fully understood the UK market or appreciate quite how competitive it is". He also said that consumers will increasingly demand more services and better service for their money.

Canadian investors looking for exposure to the booming alternative energy sector have a handful of domestic players to choose from, but the local pickings are pretty slim and most of the companies are small. So why not look overseas, to one of the green behemoths that has sprung up on the international scene? ...The fast-growing U.S. wind power industry, driven by favourable government tax policy, is Vestas' largest current market. ...Some analysts are also urging caution over Vestas' high price. "We find the shares are fundamentally overvalued," said analyst Christian Nagstrup of Jyske Bank, a Danish financial institution. The biggest risk he sees at Vestas is a bottleneck in getting parts to build the turbines. Subcontractors have been slow in delivering key components, and that could slow delivery of complete turbines, Mr. Nagstrup said in a recent report.

With eight 78-metre high wind turbines, the Gotthard project would not only be the largest wind farm but also the highest in Switzerland, at 2,040-2,131 metres above sea level. ...However, obstacles remain before sails start turning in the Gotthard pass. The area first has to be rezoned by the local authorities before planning permission could be sought and granted. ...Plans for a wind farm on the Gotthard Pass are not new. A report on wind energy in Switzerland published by the state in 2004 said locating turbines in the Gotthard Pass would be "unthinkable".

Some 51 per cent of African-Eurasian migratory raptor species have an "unfavourable" conservation status. John O'Sullivan, of Birdlife International, a global alliance of conservation organisations, said: "We have recently heard about the sad case of the golden eagle being poisoned in Scotland, but birds of prey face additional problems trying to settle in networks of suitable habitats along their migration paths. We know little about the status of raptors in Africa, and in Asia species are poorly understood." The main threats to the birds, Mr O'Sullivan said, were habitat loss, illegal hunting, power lines, and wind farm initiatives.

Birds of prey have been hard-hit by a variety of human induced threats including loss of habitat, persecution, illegal shooting and poisoning. Collisions with TV masts and wind turbines and electrocution on power lines have also added to population declines. Birds of prey are not prolific breeders which makes it hard for them to recover from losses and scientists believe that climate change will only add to the problems. Their position at the top of their food chain means they are an excellent indicator of the health of the ecosystem but unless there is an effort across borders and continents to help them their future looks bleak.

The question is no longer "Who has seen the wind?" but "Who owns the wind?" In the developing world of renewable energy, can neighbouring wind farms steal from each other? What if you put solar panels on your roof and your neighbour plants a tree that blocks them from the sun? Do you have a right to solar access? These aren't just philosophical questions, but real-life challenges that are already lining lawyers' pockets in Canada and Europe.

Vergnet Groupe, France's only wind turbine manufacturer, warned that it expects a full year operating loss of 0.8-1.2 mln eur, versus a previous forecast of profit of 1.7 mln eur, because of a reduction in its guidance for full year sales. It lowered its 2007 sales prediction to 30-32 mln eur from 40.4 mln in the light of weaker than expected second half export activity for wind farm equipment.

Wind turbine makers face a ``major challenge'' getting equipment due to surging demand and probably won't be able to cut delivery times for three years, said Suzlon Energy Ltd., India's biggest wind farm construction company. Lead times to supply wind turbines, which have reached at least 15 months, will take time to reduce as suppliers clear order backlogs and add an ``unprecedented'' amount of new capacity, Andre Horbach, Amsterdam-based chief executive officer at Suzlon, said today in Melbourne. Suzlon has a $3.5 billion order backlog, he said.

Energias de Portugal plans to monetize about 650 MW of tax equity credits by the end of 2007 that it gained through its acquisition of Horizon Wind Energy from Goldman Sachs in July, Antonio Mexia, EDP CEO, told Platts Friday. On the eve of its $3-billion acquisition of Horizon Wind, EDP monetized the 722 MW of Horizon's operational wind farms by selling them for $700 million in deal facilitated by a Citigroup-led group of banks.

Danish wind turbine manufacturer Vestas Wind Systems AS is developing a new offshore wind turbine model following recent gear box problems at several of its currently operating turbines, Swedish magazine Ny Teknik said. ...Peter Wenzel Kruse said gear boxes are a problem for the entire wind power industry, because strains on the boxes increase as ever bigger windmills are built.

However, the wind power market has a long way to go before it catches up with the more established fossil-fired generation market in terms of capacity of plants and market penetration. This is partly due to the inadequate supply of essential components, rising installation costs and over-dependence on subsidies. ..."Long-term government incentives and installation rebate supports are expected to help wind power participants meet the heavy capital required for production and installation," observes Thaler. "To become independent of government subsidies, the market has to implement intense end-user marketing and increased output to match conventional fuels."

A strong bias toward local producers and rigid price controls hinder European investors from making significant inroads into China's vast energy sector ... "Energy is sometimes also a national battlefield in Europe. But China is even more so." This nationalism, Wuttke said, was reinforced by an antitrust law passed last week that set rules to protect big state power firms from foreign acquisitions and to require potential international investors to meet strict national security criteria. Beijing also requires investors to use 70 percent Chinese equipment in foreign-invested wind farms, and a similar local content requirement was recently slapped on the booming petrochemical sector, which Wuttke said went against China's commitments in 2001 when it joined the World Trade Organisation.

There is no shortage of wind in the densely-populated Netherlands but there is a shortage of space and in a nation which likes its houses small and its gardens cosy, opposition to wind farms is immense. That is why a new Dutch wind farm is being built so far out to sea it is barely visible on the horizon, reducing the visual impact of its 60 turbines to virtually nil whilst at the same time harnessing higher offshore wind speeds. Offshore wind farms are likely to appear more and more frequently off European coastlines as governments seek to increase their use of renewable energy without angering their citizens by placing giant turbines on their doorsteps.

Clipper Windpower Plc, the partner of BP Plc in U.S. wind-energy projects, fell to an 11-month low in London trading because a faulty component will lead to a delay in shipments. ...Production of Clipper's 2.5-megawatt Liberty wind turbine has been hampered by problems relating to the supply of externally-sourced components. The company forecast a first-half loss after turbine production was ``constrained'' by difficulties in obtaining parts. ``They have slipped up on quality issues twice,'' said John-Marc Bunce, an analyst at London-based Ambrian Partners Ltd. ``This could potentially be damaging to their sales ability going forward.'' Bunce lowered his recommendation on Clipper to ``sell'' from ``hold.''

"These facilities are disproportionate to the islands' energy needs, and the majority of turbines installed in the past no longer function anyway," charged Antonia Antonakis, head of the municipal council of Serifos island. Local authorities fear that since wind turbines are usually situated on isolated hills and mountain tops, new roads will have to be built through previously unspoilt countryside, Antonakis said. Though the project on Serifos would involve building 87 turbines, 150-feet high each, this would provide less than a tenth of the country's renewable energy. The Greek industrial group Mytilineos has put in a bid for the project, which is still under consideration by the government.

European power companies are making billions of euros in excess profits in the European Union's battle to beat global warming by cutting emissions of carbon gases, and consumers are paying for it, economists say. The electricity generators are given, free of charge, permits to emit millions of tonnes of carbon dioxide which are currently worth around 20 euros a tonne, but are then charging consumers as if they had been made to pay for the permits. Michael Grubb, Chief Economist at the Carbon Trust and Director of Climate Strategies, calculates that this practice which he says is economically justifiable gives the industry windfall profits of some 20 billion euros ($27.14 billion) a year. "It is free money," he told Reuters. "It's how you'd expect companies to behave, but politically and morally it is going to be hard to justify making so much money out of a scheme designed to reduce emissions - with consumers footing the bill."

The European Commission was accused yesterday of a "grotesque" waste of taxpayers' money after it allocated funding for an organisation that exists to lobby Brussels. The lobby group, Friends of the Earth Europe, received £562,000 funding from the EU Commission last year. Its commission funding rose this year by 200,000 in order to meet "increased running costs." The group, which has a 25-strong staff in Brussels, is pre-eminent in lobbying the EU for tighter controls to combat global warming.

EXTRA capacity from Huntstown 2 and wind generators will mean that the Republic will have more than enough electricity supply to meet peak demand throughout this winter, according to Eirgrid, which operates the transmission system. Huntstown 2, which is owned and operated by Viridian, will bring 400MW of power onstream shortly, while wind generators are expected to increase their capacity from 900MW to 1,000MW in time for peak winter demand. Due to the fluctuations in wind energy generation, Eirgrid assumes the capacity credit to be 200MW on average.