Wind is gaining support as turbine costs fall and government stimulus money helps pay for the plants. Prices for turbines have declined by about 15 percent to 1.05 million euros ($1.44 million) per megawatt over the past two years, according to William Young, an analyst at Bloomberg New Energy Finance.

"It makes sense and it makes money," said Michael Liebreich, founder of the London-based consultant bought by Bloomberg LP in December.

If this year's forecast holds, the new wind turbines may supply up to 12.3 million homes, less than the almost 33 million customers that the 34 nuclear plants would power with the same capacity, according to data from the U.S. Department of Energy and American Wind Energy Association. Output from a nuclear plant is steady while turbines work only when the wind blows.

Eoin Treacy's view Wind power is enjoying a great deal of media attention because it ticks the green energy box and politicians are making money available for capacity expansion. However, the medium is expensive and remains dependent on government largesse. Personally, I am suspicious of energy policy where green credentials take precedence over the cost of generation relative to other sources and the performance of relevant shares suggests investors are skeptical of the wind sector's growth potential. (Also see Comment of the Day on October 2nd 2009).


Vestas Wind continues to underperform and has been in a downtrend since June. It found at least short-term support last week, forming a weekly key reversal. This would suggest there is potential for a relief rally, but the share needs to sustain a move above DKK335 to break the progression of lower rally highs and indicate a return to demand dominance beyond the short term. Gamesa is currently testing the March 2009 lows but needs an upward dynamic to pressure shorts and to suggest demand is returning.