Warren Buffet Bets Billions on Renewable Energy Projects

By: | December 26th, 2013

Business magnate Warren Buffet has purchased $1 billion worth of Siemens AG wind turbines in what is the largest single purchase of land-based wind power ever. The purchase was made by Buffet’s utility company, MidAmerican Energy Holdings Co., for a renewable energy project in Iowa, which could stand up as a serious competitor for fossil fuels.

The Economic Times reports that the price of turbines has fallen 26% since 2009 so the 1,050 megawatts of turbine power purchase by Buffet’s MidAmerican Energy Holdings Co. is coming in as a much more attractive investment than a couple of years ago and Buffet clearly sees potential in wind energy. He’s already invested billions in renewable energy projects, including buying Sun Power’s Antelope Valley Solar Projects earlier this year for an estimated $2-2.5 billion.

For the latest deal, Siemens will be supplying 448 wind turbines to the company in total, five of which are scheduled to be placed in Iowa. Siemens also claims that the investment will provide clean energy for nearly 320,000 households. The German company will also be responsible for the maintenance of the Iowan turbines.

Iowa appears to be fertile ground for wind power as Siemens says that it is one of the leading US states for wind energy with about 24% of power generated in the state in 2012 coming from wind power.

Jonathan Keane

Irish journalist writing on business, tech and engineering.

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