During the Obama years, General Electric rode the federally subsidised green energy steamroller to the limit. GE assumed that Hillary Clinton would be the next US president, and that the green scam would continue endlessly into the future.
But with the election of a new president who understands raw profit and loss — without the government handouts — GE suddenly finds itself in danger of being kicked off the Dow Jones Industrial Average after 110 years of previously strong performance:
GE’s troubles are myriad, with pressure on earnings and cash, tough global power generation markets, aggressive downsizing, portfolio divestment, management shake-up and U.S. Securities and Exchange Commission investigations. GE’s turbulent past 12 months has steeply eroded its market value, making it the worst performer on the Dow in that time. The company’s stock price is down 46 percent, while the index itself gained 32 percent. __ Bloomberg
GE’s green energy division is not the only symptom of bad management, but it is certainly a strong sign of stupidity at the highest levels of GE. The entire idea of large grid-scale wind and solar is ludicrous from the outset:
To paraphrase billionaire Warren Buffett: “Wind farms don’t make sense from the standpoint of energy production. The only reason to invest in them is the government subsidies and tax breaks.”
GE has gone especially off the tracks when it comes to its offshore wind turbine enterprise.
[The]“maintenance and repair costs of offshore wind turbines over the years add up to be a hundred times the cost of the new turbine itself,” says Peter Plagemann of the Fraunhofer Institute for Production Technology and Applied Material Science (IFAM) in Bremen…
Germany’s Fraunhofer-Gesellschaft reports how offshore North and Baltic Sea wind turbines need to be in operation for 25 years before they become profitable, but that they are prone to shortened lifespans due to rust from the harsh sea environment.
As a result the wind turbine installations need extra and very costly maintenance to ensure that they survive long enough. It’s turning out to be an insurmountable challenge.
Maintenance to turbines cannot be done at a dry dock, rather, because they are permanently fixed out to sea, repair work and maintenance have to be done offshore in raw and windy conditions. Not only is this expensive, but it also puts the lives and limbs of repair personnel at risk.
Al Fin has always been a fan of small scale wind and solar power, for off-grid applications. Until about ten years ago, Al Fin assumed that wind and solar could be scaled up economically to grid-scale to provide clean, cheap, reliable power. But if you look deeply enough into the nitty-gritty of grid-scale power, you will start to see some significant problems in scaling up wind & solar for grid scale usage. The more deeply you look, the more clearly idiotic the entire idea of grid-scale wind & solar is revealed to be.
But that did not stop Obama from wasting hundreds of $billions of US taxpayer funding to prop up a corrupt industry that should never have gotten off the ground. General Electric simply got caught in the middle of the huge scam — and is now paying the price of playing along with a politically corrupt scheme that it believed would never end.
Reliable, affordable, abundant electric power is a life or death matter. It should not be treated as a political spoils game for corrupt insiders. Obama took that rotten path, as did Angela Merkel and Jerry Browne. It is ordinary people who will pay the price of their criminal malfeasance. But General Electric getting thrown off the DJIA would suggest that the pain is creeping up the food chain.