Buffett Buys $1 Billion in Wind Power
Purchase marks shift toward renewable energy
Warren Buffett’s utility company, MidAmerican Energy Holdings, has purchased 448 wind turbines for nearly $1 billion. The purchase signifies a move toward making renewable energy more cost competitive with fossil fuels.
Buffett’s purchase, the largest ever in the land-based wind industry, will be spent on projects across Iowa. The price of wind turbines has dropped nearly 26 percent since 2009, posing a serious threat to coal and fossil fuel utilities, reports Bloomberg.
“If Congress were to remove all the subsidies from every energy source, the wind industry can compete on its own,” says Tom Kiernan, CEO of the American Wind Energy Association.
Coal-powered plants are slowly leaving the picture and MidAmerican’s purchase will certainly act as another step in the direction of wind power as costs of renewable energy continue to drop.
Power from an on-shore wind farm costs $82.61 per megawatt-hour, compared to $78.30 for coal, and $69.71 from gas, according to Bloomberg.