Lower Government Spending to Hit Wind Farms (GE, SI)

In 2011, global investment in new wind power generation totaled $74.6 billion. The latest estimate from Bloomberg New Energy Finance is that 2012 investment will fall to $60.8 billion and that the 2011 level won’t be seen again for at least five years.

Wind turbine makers like General Electric Co. (NYSE: GE), Germany’s Siemens AG (NYSE: SI), China’s Sinovel Wind Group, and Denmark’s Vestas Wind Systems A/S will all feel the pinch, but Sinovel and Vestas will feel it the most because they are the least diversified.

Bloomberg New Energy Finance expects spending to reach last year’s total again in 2017.