JPMorgan Capital Corp has invested $1.2 billion in wind projects so far this year, which is half of the total number of deals (for the US) in the sector, according to Dow Jones Cleantech Investor. So far this year, the bank has invested in six deals for 12 wind farms that would generate 1,275 megawatts of power. Overall there are $3.8 billion in planned wind projects for the U.S. institutional equity market this year, which will deliver 3,900 MW.
John Eber, managing director and head of energy principal investments at JPMorgan, tells the newsletter that this year the firm is set to exceed its last year’s wind investments of $1.5 billion, even though the returns on wind (investments) have been decreasing for the overall industry. Investors have been betting on wind projects as states have mandated that utilities add more power from clean energy sources like wind.
But the cost of wind projects are still high. Last week the Long Island Power Authority said it is shuttering its plans to create a $700 million wind energy park due to the high cost.