Wind power is the conversion of wind energy into electricity using turbines.  Wind is gaining worldwide popularity as a large scale clean energy source.  Currently, wind power provides only 1.5% of global energy consumption. But the potential for growth is astonishing. Theoretically, the wind power available in the atmosphere is much greater than current world energy consumption, so the growth prospects are virtually unlimited.  Generous government subsidies and lower wind turbine prices will open a new bull market in wind stocks.

The global wind energy industry has seen record breaking growth over the last few years and is now used in more than 70 countries, with the U.S. and China leading the way.

Wind power is already cost-effective and the cost is expected to go down over time as the technology for turbines becomes cheaper and more efficient. Plus, wind power produces no air pollution and can help meet growing energy demand without increasing fossil fuel consumption.

Wind energy cost a fifth of what it did in the 1980s, and I expect that downward trend to continue as larger multi-megawatt turbines are mass-produced.  The biggest turbines can already produce enough power for 5,000 households. The 7+ megawatt Enercon E-126 is pictured below:

Last Tuesday, President Obama said he wants to promote clean energy sources like wind power and gave his full endorsement to pending energy and climate change legislation.

As a long-term play, I recommend the exchange-traded fund, First Trust Global Wind Energy (FAN). This ETF tracks the ISE Global Wind Energy index and holds companies that provide goods and services to the wind energy industry, like Gamesa, Vestas and Broadwind Energy.

Best Wishes,

Ted Peroulakis

P.S.  My new options service will recommend options on companies in the clean energy business.  You could really multiply your gains with the right options plays…  Check out my new Options Power Trader