Summary of Strategy and Market Analysis
Wind energy is the fastest growing segment of the $650 billion annual world electricity market. From 1996 through 2010, the wind industry had a 28% annual growth rate. In 2010, more than $8.5 billion was invested in new wind turbines worldwide.
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An element in our strategy is to find the simplest method of initial market penetration. Mass Megawatts plans to form strategic alliances with existing well financed developers who seek low cost wind power plants for their projects. The mutually profitable strategic alliances with these wind power developers will avoid difficulties of evaluating wind resources, obtaining siting, financing, and locating potential purchasers of power plants. The new wind power projects include redeveloping abandoned or obsolete wind farms. These and other large scale opportunities can be found in Texas, California, and other pro-wind states. Smaller power plant projects can still have great potential where areas of favorable electricity prices and higher wind create substantial profits. Our initial strategy places turbines in high wind areas where the purchase contracts from utilities for wind energy are already available. At those sites, permitting and other regulatory land use hurdles have been cleared and initial wind resource testing procedures have been completed. Marketing efforts will be directed at wind power developers who have many years of experience with wind power development, some of which have operated these abandoned sites we will redevelop. These purchasers have a better understanding of the value inherent in this Company's product. As a result, they are a primary target market.
The United States electric power industry is valued at $215 billion and growing. Within the next 20 years, wind farms could generate $100 billion worldwide, according to the National Renewable Energy Laboratory. The sites we have chosen are proven to provide wind sufficient to enable Mass Megawatts to profitably build and operate wind farms.
Wind power is poised to make significant inroads into mainstream electrical power production. Electrical demand is unprecedented and the cost of wind energy production is becoming more attractive. The technical obstacles of transmission and storage are being worked on aggressively. The results of greater penetration of wind powered electrical generation will be lower electrical costs and lower environmental impact as compared to conventional electrical power production.
On an individual state analysis, Texas has the largest statewide expenditure, exceeding $2.4 billion. A distant second was Colorado, spending over $1.2 billion on wind turbines. California has often been the testing ground for new wind turbine developments and technologies, and is anticipated to surge ahead in the coming years. Iowa, too, developed $1billion on wind power plants in recent years.