nuclear-news

“Someone’s sitting in the shade today because someone planted a tree a long time ago.” – Warren Buffett……..Buffett’s success is also his ability to acknowledge that sometimes things dochange and that new competitive advantages can and must be built. MidAmerican Energy has been doing just that for the past nine years, working with companies like Siemens (NYSE: SI), SunPower (NASDAQ: SPWR), and Vestas (NASDAQOTH:VWDRY) to add renewable energy to its mix in a big way. Renewables are becoming a huge — and growing — part of Berkshire’s competitive advantage at MidAmerican. Let’s take a closer look at how these companies are all expanding in the surge of demand for renewable energy with Berkshire and beyond.

Nine years in and just getting started
Buffett had this to say about renewables in his latest annual letter to shareholders:

From a standing start nine years ago, MidAmerican now accounts for 7% of the country’s wind generation capacity, with more on the way. Our share in solar — most of which is still in construction — is even larger… When our current projects are completed, MidAmerican’s renewables portfolio will have cost $15 billion. We relish making such commitments as long as they promise reasonable returns. And, on that front, we put a large amount of trust in future regulation.

Buffett’s team at MidAmerican aren’t making these investments in renewables just because they are good for the planet — though I’m sure that does play some role — these investments are being made because they are profitable, and offer durable advantages and reasonable returns. MidAmerican’s contribution to Berkshire’s 2013 earnings was $1.47 billion, up 11% from 2012.

SunPower’s deal with MidAmerican just one of many globally
SunPower’s big 2012 deal with MidAmerican — valued at between $2 billion and $2.5 billion — to construct two co-located solar farms in the California desert north of Los Angeles is well under way, having been recently synchronized to the grid and already producing 10% of the planned output. Not only will SunPower build the 579 MW facility, but it will also maintain it after completion.

SunPower has since signed a number of agreements to build solar farms around the world, including an 86 MW plant in South Africa it will build with majority shareholder Total; supplying the panels for a combined 96MWs at two plants in Japan — 69 MWs of which will be a single installation, and the country’s largest to date; and another deal with Total for a 70 MW plant in Chile. The company also recently completed a 250 MW facility in California for NRG Energy……….http://www.fool.com/investing/general/2014/03/09/heres-why-warren-buffett-is-betting-big-on-renewab.aspx