Buffett invests $1.9 billion in wind power

In the early morning of May 10, Beijing time, Sino-U.S. energy company announced a $1.9 billion wind energy investment plan on Wednesday and will install hundreds of new wind turbines by the end of 2015. This is also referred to as Iowa, the company's location, as the largest economic development project in the state’s history.

US and China Energy officials announced the plan at a state government press conference with Iowa governor Terry Branstad, who later stated that wind power has become an attempt One of the selling points of state-invested high-tech companies. Berkshire Hathaway, headed by Warren Buffett, is the parent company of Sino-U.S. Energy, which is also the largest energy company in Iowa, for the state, Illinois, Nebraska and South Dakota. There are 734,000 users in Taju providing electricity and 714,000 natural gas users.

Governor Terry Blandstad said at a press conference, “Wind energy is an explosive area and we are very excited about it. With the increase in the scale of wind power generation, Iowa’s economy will develop.”

Sino-U.S. Energy Company pointed out that the new development plan includes 656 wind power turbines, and the specific location has not yet been selected. As the federal tax benefits will offset the cost of the project for the next 30 years, wind power users will not have concerns about rising electricity costs. By the time the project is completed, there will be at most 1050 MWh of generating capacity, equivalent to 40% of the company's customer electricity consumption. The project will also bring 460 construction jobs and 48 permanent jobs to Iowa.

Sino-U.S. Energy has invested in wind power generation since 2004 and currently has 1,267 wind turbines in the entire territory of Iowa. According to the American Wind Energy Association's annual market report for 2012, Iowa is a leader in wind power construction in the United States. In 2012, 24.5% of the state's power supply was provided by wind power generation.

Buffett is optimistic that the wind power industry may bring opportunities for A-share listed companies, focusing on: Sinovel Wind Power, Goldwind, Tianshun Wind Power, Taisheng Wind Energy, and Hunan Electric Power.