What's telling is that the European interest hasn't wavered even though U.S. federal subsidies for clean energy are slated to expire this year and have yet to be extended. Historically, the federal tax-credits have been make-or-break for the industry. Now, though, it appears other factors weigh more heavily. EDP is so anxious to expand in the U.S. that it ordered more wind turbines from India's Suzlon this week, even though those Suzlon machines have had technical glitches. The big drivers? State incentives for renewable energy, like those in Texas; a slow but inexorable shift in the U.S. toward cleaner energy; and the high-quality wind resources in the U.S., which dwarf those of Europe (and other parts of the world.)

Politicians in Washington may not yet be convinced of the viability of renewable energy like wind power, given the Hill's repeated delays in renewing federal tax-credits. But there are a few true believers: big European utilities convinced the U.S. is the El Dorado of wind power.

E.On, one of Europe's biggest power companies, said Thursday it will invest the lion's share of its renewable-energy budget in the U.S. Why is that, given that Germany is the home of fat subsidies for renewables and still the world leader in wind-power capacity? There's no lebensraum there-wind resources are poor, and offshore wind is still more dream than reality.

E.On's renewables boss Frank Mastiaux told the FT Deutschland: "In Texas you've got a lot more sites and a lot more wind."

E.On will put 4 billion euros-more than $6 billion-into the U.S., about two-thirds of its green checkbook for the next three years. E.On, which last year acquired Airtricity's U.S. operations, currently has about 425 megawatts of wind farms under construction, in Texas and other states.

And the Germans will have company. Energias de Portugal, Portugal's biggest utility and the fourth-biggest wind-power operator in the world, told Reuters Friday that it will go ahead with the stock-market listing of its renewable-energy arm this summer despite dismal markets. EDP wants the cash to expand in the U.S. after it bought Houston-based Horizon Wind last year. Friday, BP Alternative Energy and NRG Energy also tied-up a $280 million financing deal with Fortis merchant bank for another Texas wind farm.

What's telling is that the European interest hasn't wavered even though U.S. federal subsidies for clean energy are slated to expire this year and have yet to be extended. Historically, the federal tax-credits have been make-or-break for the industry. Now, though, it appears other factors weigh more heavily.

EDP is so anxious to expand in the U.S. that it ordered more wind turbines from India's Suzlon this week, even though those Suzlon machines have had technical glitches. The big drivers? State incentives for renewable energy, like those in Texas; a slow but inexorable shift in the U.S. toward cleaner energy; and the high-quality wind resources in the U.S., which dwarf those of Europe (and other parts of the world.)

If EDP does pull the trigger this summer, it will also provide an interesting reality-check on the true value of alternative energy when global stock markets are in retreat. Bankers valued the EDP unit at between 7 billion and 11 billion euros-$10 billion to $16 billion-when planning the listing last year. Since, other big renewable-energy groups with sky-high valuations like Iberdrola Renovables have stumbled badly.

It's another coming-of-age moment for wind power. Subsidies are under the gun, but interest and investment are higher than ever despite economic woes. Stay tuned.

Web link: http://blogs.wsj.com/environmentalcapital/2008/04/...