Advances in renewable technologies could help fan the wind-turbine industry and sector-related exchange traded fund.
The First Trust Global Wind Energy Fund (NYSEArca: FAN) has increased 19.0% year-to-date.
FAN, which tracks 44 global wind energy-related companies, is the only U.S.-listed ETF to focus on the wind sector.
The wind energy industry may increased profitability as advances in technologies help diminish costs and make wind turbines utility scalable in all 50 states over the next decade, reports Aaron Levitt for Investopedia.
Specifically, new technologies enable advance turbines to have higher hub heights, larger rotors and improved energy capture. Additionally, these wind turbines may access stronger and more consistent wind resources at greater heights and even in areas with moderate wind resources.
For instance, taller wind turbines could unlock an extra estimated 700,000 square miles to wind power, including areas in the Southeast that lack wind turbine capabilities due to low wind speeds.
“Based on an advanced turbine concept and assuming hub heights of 110 meters (m) (which are already in wide commercial deployment in Germany and other European countries), the technical potential for wind deployment is estimated to grow to 4.3 million square kilometers, a 54% increase compared to current technology with 80-m hub heights,” according to the Department of Energy’s new Enabling Wind Power Nationwide report. “By pursuing hub heights of 140 m, the technical potential for wind deployment is estimated to grow to 4.6 million square kilometers, a 67% increase compared to current technology with 80-m hub heights.”