Warren Buffett dives into wind power

Why is everybody making such a fuss about the latest Warren Buffett wind power purchase?  The new order is big news for Siemens, which thanks to Buffett gets to win the week in wind power news with bragging rights to receiving the world’s largest ever single order for onshore wind turbines: 448 of its SWT-2.3-108 models with a combined capacity of 1,050 megawatts.

The decision by Warren Buffett’s utility company to order about $1 billion of wind turbines for projects in Iowa shows how a drop in equipment costs is making renewable energy more competitive with power from fossil fuels. Turbine prices have fallen 26 percent worldwide since the first half of 2009, bringing wind power within 5.5 percent of the cost of electricity from coal, according to data compiled by Bloomberg. MidAmerican Energy Holdings Co., a unit of Buffett’s Berkshire Hathaway Inc. (BRK/A), yesterday announced an order for 1,050 megawatts of Siemens AG (SIE) wind turbines in the industry’s largest order to date for land-based gear.

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