Power & Money Go Together: Warren Buffet’s Blind Bet on Wind and Solar Power

The most successful investor of the 20th century, Warren Buffett vowed to spend double the current outlay of Berkshire Hathaway Inc. on wind and solar power in the U.S yesterday.

At the Edison Electric Institute’s annual convention in Las Vegas yesterday, Buffett not aware of how much they has committed earlier, briefly stopped to enquire a deputy, Greg Abel, before responding, “There’s another $15 billion ready to go, as far as I’m concerned”, further tallying the bets to a total of $30 billion into renewable energy.

Unsurprising it is for the Wall Street, that has gotten used to bold remarks from the Berkshire chairman and chief executive officer, who frequently talks about hunting for “elephant”-size acquisitions and making multi-billion-dollar stock purchases.

World's Largest Solar Thermal Power Plant, Mojave Desert.

World’s Largest Solar Thermal Power Plant, Mojave Desert.

Putting Money where his Mouth is

The investments can lead to gigantic implications in Iowa, where Berkshire Hathaway Energy subsidiary, MidAmerican Energy, will be investing around $5.8 billion into wind energy on completion of a $2 billion expansion in 2015.

The latest project is said bring an increase in 40% of the company’s total energy portfolio, said Adam Wright, MidAmerican’s vice president of wind generation and development at a White House panel on climate change last month in Des Moines.

Warren Buffet’s Blind Bet on Wind and Solar Power

Warren Buffet’s Blind Bet on Wind and Solar Power

Earlier this month, the U.S. Environmental Protection Agency proposed that states be required to cut back carbon emissions by 30 percent by 2030, which was widely applauded by Nations across the globe.

Berkshire has been able to pump so much into renewable energy is because it can use tax credits to offset profit at other businesses, said Greg Abel, 52-year-old CEO of Berkshire Hathaway Energy in a Bloomberg Report.

Other units of Buffett’s company also included Geico, Dairy Queen, Shaw Carpet and Fruit of the Loom.

“It is encouraging that he wants to invest because as an industry we have a strong need for capital,” Nick Akins, CEO of American Electric Power Co., said on Buffett’s remarks on renewable.

American Electric Power is a partner with Berkshire in Electric Transmission Texas, a JV that builds and operates power lines carrying electricity from Texas’s windy plains to the cities.

While spend $30 billion on renewable-energy projects would have been unheard of two decades ago at Berkshire, Buffett is signaling that the returns are quite attractive, said Jeff Mathews, a shareholders and author of books about the company. “If he says it, he means it,” said Matthews. “The whole complexion of the company has changed.”

Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Twitter, Facebook

Recent Posts

Tesla Cybertruck V/s Rivian’s R1T

Tesla Cybertruck V/s Rivian’s R1T

The Tesla Cyberturck left many disappointed with its alien space ship-like design; though both trucks are still under production, what matters most is what comes under the hood.
15 hours ago
College sports is multibillion dollar industry in the US

College sports is multibillion dollar industry in the US

According to data analyzed by GOBankingRates, head football coaches, closely followed by basketball coaches, easily rack up seven-figure salaries in the US.
2 days ago
Top women influencers in finance and wealth management

Top women influencers in finance and wealth management

It is only in the last century or so that women have been publicly acknowledged for their roles as leaders in various fields. Here’s a list of women influencers by Industry Leade
3 days ago
Brian Goldner, who led Hasbro’s transformation into an entertainment giant, passes away at 58

Brian Goldner, who led Hasbro’s transformation into an entertainment giant, passes away at 58

Brian Goldner, the CEO and Chairman of toymaker Hasbro, has died at age 58, the company said Tuesday (Oct. 12).
4 days ago
JPMorgan Chase CEO Jamie Dimon slams Bitcoin as worthless

JPMorgan Chase CEO Jamie Dimon slams Bitcoin as worthless

JPMorgan Chase CEO Jamie Dimon took another potshot at Bitcoin on Monday by calling the cryptocurrency “worthless” likening trading BTC to smoking cigarettes.
5 days ago
Refiner Eneos to buy Japan Renewable Energy for $1.8 billion

Refiner Eneos to buy Japan Renewable Energy for $1.8 billion

Eneos Holdings, Inc., Japan’s biggest refiner, announced Monday it would buy Japan Renewable Energy (JRE) for $1.8 billion to expand its low-carbon businesses.
6 days ago