Sometimes themes about possible solutions to the world’s problems gets ahead of the profits. For example: one method to increase the production of electricity is to tap the wind or wind power. In countries around the world, wind power was done at a small scale and it works wonderfully. One can easily think about the Netherlands or Don Quixote charging at giants or reality windmills in Spain. In every country the wind blows or seems to blow more than other places and tapping into the wind makes common sense.

In an article by Christoper Stitz, Stine Jacobsen and Jacob Grohnolt-Pederson of Reuters, the 3td largest industrial wind power groups are based in Europe and are Siemens Energy AG, Orsted A/S, and Vestas Wind Systems but they are not expecting a good 2024.

Siemens Energy, the world’s largest maker of offshore wind turbines expects a loss of $2.9 billion. The wind division had to deal with the cost of addressing quality problems.

China is the biggest customer for wind projects is on track to increase global renewable capacity 2 and half times by 2030.

Similar to other manufacturing processes costs are rising for raw materials, there are regulatory delays.

While demand is still good, the terms and conditions of the projects are too difficult for investors and project developers to take.

Danny van Doesburg, senior portfolio manager at Dutch APG Asset Management said, the market is not functioning anymore and a solution is for a stronger role for governments to help deliver a functioning model that distributes profits throughout the value chain.

All three wind companies are cutting costs to make a leaner more efficient company.

Linking to dividend paying stocks, you may like an industry but it is important to understand how they make enough money to make profits. If there is a big demand for the products who makes the highest margins and why are they sustainable? Once you have an answer invest in those companies who may or may not be have the highest public profile.

There are more questions than answers, till the next time – to raising questions.